Problem 1:
Consider the following scenario: While working on a consulting engagement, a supervisor in your team has given you an assignment. The client is a regional trucking company. A new customer has approached the client with an opportunity that will require it to utilize 120 trailers-20 more than the trucking company currently owns. The client is unclear how long the relationship with the customer may last, but the deal has the potential for significant growth. Your supervisor has asked you to research issues in the Financial Accounting Research System (FARS) relating to leases and lease structures, in particular the current practice and thought related to direct financing, sales type, and operating leases.
Write a 700- to 1,050-word memo addressing your supervisor that summarizes your FARS research results. Keep the memo brief while exploring the issues. Remember, both the client and the supervisor have limited time, and you want to make a good impression. Recommend an approach the client can use to evaluate and capitalize on this opportunity.
Problem 2.
You are a controller in a midsized manufacturing company that has acquired 100% of another company. The acquired company includes two segments and two different pension plans. Both of these reporting issues are new to your CEO, and your CEO wants to eliminate the segments.
Write a 700- to 1,050-word executive memo that explains the required reporting for defined contribution, defined benefit, and other postretirement plans. Also include an explanation of what must happen in order for the two segments to be eliminated. (You do not need to know details about the segments to answer this.)