Assignment
Within the Discussion Board area, write 400 to 600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas:
You have just joined a CPA firm. This is your first time working with the client. The client has asked for help in reporting some securities, and the audit manager on the job has asked you for recommendations on the reporting.
Provide a report that includes your recommendations on reporting, and its effect on carrying value and earnings in each of the following situations:
o The client has an equity security that has declined in value (i.e., the market value is less than what he or she paid for it [cost]). It is currently classified as available-for-sale, but the client would like to change its reporting to a trading security.
o The client has a combination of investments in a portfolio that are long-term investments. The portfolio has increased in value on the whole, but there is one stock whose value has fallen by more than 60%. The client thinks that this decline in value is permanent.
o The client has a portfolio of trading securities that has dropped 20% in value. He or she has another portfolio that is available-for-sale and its fair value has increased by 40%.
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.