The final project for this course is the creation of a white paper consisting of a report and spreadsheets. The final project represents an authentic demonstration of competency because you will be placed in a scenario in which you will take the role of an associate in a certified public accountant (CPA) firm. The CPA partners in this scenario ask you to create a report for the firm’s clients to help address some of the questions they ask. This exercise will task you with preparing the information necessary to address the client’s questions in report format. Topics addressed in the white paper will cover bankruptcy, interim and segment reporting, foreign currency transactions, and nonprofit and governmental accounting. The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Three, Five, and Seven. The final project will be submitted in Module Nine. In this assignment, you will demonstrate your mastery of the following course outcomes: Differentiate between various forms of bankruptcy and restructuring for how they impact incorporated entities Construct interim and consolidated financial statements for addressing full disclosure and transparency under both GAAP and IFRS reporting requirements Create translated foreign currency financial statements using current and temporal methods to illustrate the impact of foreign exchange rates Appraise the processes used to identify reportable segments for their effectiveness in supporting transparency in financial reporting Compose nonprofit and governmental financing statements that are compliant with applicable governing rules and regulations including government accounting standards (GAS) Prompt Imagine you have been working at an established CPA firm for two years. Your great work has not gone unnoticed, and the CPA partners have asked you to assemble a white paper for the firm’s clients to help address some key areas of concern. Your goal is to create the information necessary to address each of the topics as outlined below. You will prepare the information in a written report format, with accompanying spreadsheets as supporting documentation, for the partners and clients. Specifically, the following critical elements must be addressed: I. Incorporation: Clients considering structuring their new business as a corporation are aware that there are complex issues to consider when accounting for an incorporated entity. The clients often want information about the following key areas: A. Differentiate between various forms of bankruptcy and restructuring that the clients should understand. 1. Summarize the key points of interest if the company fell on hard times and had to file voluntary bankruptcy. What ethical implications should be considered when debating whether or not to file bankruptcy? 2. Identify the key areas of concern if the company fell on hard times and their creditors forced them into bankruptcy. What defenses are available in this situation? 3. Illustrate hypothetical calculations that would be done to help creditors understand how much money they might receive if the company were to liquidate. B. What interim reporting requirements would the company have as a corporation? 1. Describe the guidance related to interim financial reporting under generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS). 2. Generate a hypothetical financial statement illustrating what that interim reporting entails. Ensure all information is entered accurately. 3. Determine if the interim reporting requirements are the same under GAAP and IFRS. Provide example with academic support in your response. C. Clients have heard that they may have to report some of their business segments separately if they opt to incorporate. 1. Appraise one of the processes used to identify which segments would have to be reported separately. Provide example with academic support in your response. 2. How is this process effective in supporting transparency in financial reporting? Defend your response with academic support. 3. Provide suggestions to improve this process in an effort to sustain transparency. Defend your rationale with academic support. D. When incorporating, it is important to consider whether or not the company will conduct business internationally. 1. Summarize the impact of foreign exchange rates on the company’s financial statements. What risks do foreign exchange rates pose? Provide academically supported example(s) in your response. 2. What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used? Provide academic support in your response. 3. Compose a hypothetical example to demonstrate the translation process using the two methods. Ensure all information is entered accurately. II. Nonprofit and Governmental: Some clients ask about accounting for nonprofit entities and governmental entities. Discuss the reporting requirements for each and how they differ from a for-profit entity. A. Explain how to address compliance with Government Accounting Standards (GAS) in nonprofit and governmental financial statements. Support your response with academic source(s). B. Explain how the analysis of nonprofit and governmental financial statements differs from analysis of traditional financial statements. Provide academic examples to support your response. C. Compose example financial statements for your company as a nonprofit entity and as a governmental entity. Ensure all information is entered accurately and the statements are compliant with GAS. Milestones Milestone One: Bankruptcy In Module Three, you will submit a report covering Section I, Part A of the final project. In the paper, you will discuss the issue of bankruptcy, both voluntary and forced, as well as liquidation. This submission will be graded with the Milestone One Rubric. Milestone Two: Interim and Segment Reporting In Module Five, you will submit a report and the necessary spreadsheets for Section I, Parts B and C of the final project. You will discuss interim reporting requirements under GAAP and IFRS, and provide an example financial statement illustrating what the interim report should entail. You will also discuss reporting requirements for business segments and discuss transparency in financial reporting. This submission will be graded with the Milestone Two Rubric. Milestone Three: Foreign Currency Transactions and Statements In Module Seven, you will submit a report and the necessary spreadsheets for Section I, Part D of the final project. You will consider the company’s potential international business deals, such as the impact of foreign exchange rates and the methods for translating financial statements. You will also create a hypothetical example demonstrating the translation process, using the two methods, to submit with your paper.