Project Information
You are a manger in the accounting department of Greene company. Greene is a rapidly expanding manufacturing company, and is considering some additional acquisitions. The company would like to diversify, and is trying to decide between the two different scenarios outlined in Part 1 and Part 3. To help him make his decision, the Chief Financial Officer would like specific information on how the potential acquisitions would affect financial reporting.
Project Requirements
This project is split into four parts with one part due each week of the course. Based on your readings, use of technology, research of literature, and other sources do the following:
• Part 1 - Greene is considering diversifying by purchasing an insurance company and a lumber company. The CFO would like to know how the accounts of these two substantially different subsidiaries would be reported in the consolidated financial statements. Research the Accounting Standards Codification to see what guidance is provided, and prepare a 2-page memo to the CFO with your findings. Include in your memo at least two examples of situations in which it may be inappropriate to combine similar-appearing accounts of two subsidiaries.
• Part 2 - View the attached excel file to prepare a consolidated balance sheet for Greene.
• Part 3 -In a separate scenario, Greene is investigating purchasing two overseas manufacturing companies that would be included in Greene's consolidated financial statements as wholly owned subsidiaries. One company is in New Zealand, and the other company is located in Spain. The CFO would like to know what factors need to be considered when determining the functional currency for a consolidated subsidiary. Research the Accounting Standards Codification to see what guidance is provided, and prepare a 2 page memo to the CFO explaining the various economic indicators to be considered both individually and collectively.
• Part 4 - Present your project to the class for discussion.
Writing Requirements
The report should be should be 4-5 pages (not including cover page, abstract, or references)
• Include the Excel spreadsheet(s) as exhibits in your paper
• Include a minimum of 3 scholarly sources from the KU Library
o All sources used are to be cited in APA format
• Please use the writing center if needed
Collaborative Activity
You will be using Excel to create the exhibit to your paper
• You will be presenting your findings from the project to the class using the voice-over feature in PowerPoint or YouTube. Please be sure the audio is clear and the file or link is accessible in the Week 4 Presentation discussion board.
• You will be collaborating with other classmates on their presentations and answering any questions about your own presentation..
Four Parts
• 1: Submit your memo regarding account presentation.
• 2: Submit your completed excel template.
• 3: Submit your memo regarding functional currency.
• 4: Present and discuss your project
FASB Codification/AAA Student Log in Access
Keiser University subscription to the Academic Accounting Access to FASB Accounting Standards Codification Professional View and Governmental Accounting Research System (GARS) Online for September 2016- August 2017:
https://aaahq.org/FASB-GASB
Student Access
Username - AAA53060
Password - 7RHs3pS