Many students often struggle with their depth and structure in financial reporting. Here’s a method you can apply and use.
If you are analyzing accounting issues, read the required first and determine if your client is asking you for a recommendation.
Start by identifying the issue. What is the exact issue or accounting treatment per case facts?
Next is your analysis or the body of your financial reporting discussion.
Discuss your alternatives by first identifying the criteria’s (if applicable) in your analysis.
Next to each criteria, you should specify whether the criteria is met or not met and WHY.
The WHY comes directly from your case facts. Integration of both is required for depth.
Third, provide a conclusion or recommendation on the correct treatment. This part is short and sweet. Don’t start to re-analyze your issue again in your recommendation. We tend to do this because we are insecure of our analysis and repeat ourselves. So be careful!
Finally, you need to provide a financial statement impact. How does your recommendation impact the financial statements?
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