Full Disclosure in Financial Reporting � Verizon Communications
Case study on financial reporting transparency in Verizon Communications.
Mia Martinez
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Verizon Communications 1
Full Disclosure in Financial Reporting – Verizon Communications
Use the Internet to research Verizon Communications’ financial statements, annual report, notes to the financial statements, president’s letter, and management discussion and analysis from the most
recent year in order to complete this assignment.
1.Discuss the disclosure requirement on accounting policies, and identify at least two (2) examples of the most commonly required disclosure. Explain the key ways in which the examples you provided
are useful to financial statement users. Analyze Verizon Communications’ disclosure on accounting policies, and give your opinion on whether or not the information is helpful for decision making. Provide
a rationale for your response. 2.Explain the importance of the management discussion and analysis section of an annual report. Select three (3) items from Verizon’s management and discussion analysis
of the annual report that could be useful to potential investors. Provide three (3) specific examples of how the three (3) items you selected could influence a potential investor’s decision to invest in
Verizon. 3.Describe segmented information, and explain the way in which companies determine segments. Identify at least three (3) advantages and three (3) disadvantages of segmented financial data.
Give your opinion on whether or not the advantages outweigh the disadvantages. Outline the manner in which Verizon segments its financial data. Suggest key actions that Verizon’s management can
take in order to improve the company’s segmented financial data. Provide a rationale for your response. 4.Analyze the various types of auditor’s reports, and determine the impact that the auditor’s report
has on a company’s ability to obtain financing from a bank. Identify the type of auditor’s report issued on Verizon, and speculate the manner in which you believe banks will perceive Verizon’s auditor’s
report.
1. Accounting policies are important for sufficiently considerate the information offered in monetary
statements. That us and unit as necessary with GAAP must present as a vital element of the monetary statement
a declaration recognize the accounting policies implemented by the reporting unit. Accounting policies are the
particular accounting ways an association currently applies as well as believes generally suitable to present its
monetary declarations honestly. The disclosing of those policies should include significant ends as to the
significance of values concerning the appreciation of income as well as distribution of asset prices to present.
Recognizing the accounting policies responds queries like as the way of reduction applied, assessment
way of list, as well as the paying back of subtlest as secretarial standards permit dissimilar actions for the
identical deal. Some transforms in the accounting policies should also be related if the transform is substance to
the present time or is sensibly supposed to have a material result in an afterwards time. Accounting policies
implemented with an association considerably influences the appearance of its monetary arrangement, money
flows, as well as outcomes of processes. Consequently, obviously outlining secretarial policies permit
customers of these monetary statements to evaluate monetary details with other units inside the equal business.
(Financial Statement, 2014)
In checking Verizon’s 2013 yearly description, supervision expressed their reduction way regarding
plant, goods, as well as apparatus. As declared in the yearly statement, Verizon documentations plant, assets,
and tools at price, reduce applying the straight-line way in excess of the guessed helpful life of the advantage.
By disclosing the reduction way, customers of Verizon’s monetary statements are willingly talented to evaluate
exactly financial declaration outlines with one more businesses’ as variations in net profits could basically be
the exploitation of reduction ways.
Full Disclosure in Financial Reporting – Verizon Communications
Use the Internet to research Verizon Communications’ financial statements, annual report, notes to the financial statements, president’s letter, and management discussion and analysis from the most
recent year in order to complete this assignment.
1.Discuss the disclosure requirement on accounting policies, and identify at least two (2) examples of the most commonly required disclosure. Explain the key ways in which the examples you provided
are useful to financial statement users. Analyze Verizon Communications’ disclosure on accounting policies, and give your opinion on whether or not the information is helpful for decision making. Provide
a rationale for your response. 2.Explain the importance of the management discussion and analysis section of an annual report. Select three (3) items from Verizon’s management and discussion analysis
of the annual report that could be useful to potential investors. Provide three (3) specific examples of how the three (3) items you selected could influence a potential investor’s decision to invest in
Verizon. 3.Describe segmented information, and explain the way in which companies determine segments. Identify at least three (3) advantages and three (3) disadvantages of segmented financial data.
Give your opinion on whether or not the advantages outweigh the disadvantages. Outline the manner in which Verizon segments its financial data. Suggest key actions that Verizon’s management can
take in order to improve the company’s segmented financial data. Provide a rationale for your response. 4.Analyze the various types of auditor’s reports, and determine the impact that the auditor’s report
has on a company’s ability to obtain financing from a bank. Identify the type of auditor’s report issued on Verizon, and speculate the manner in which you believe banks will perceive Verizon’s auditor’s
report.
1. Accounting policies are important for sufficiently considerate the information offered in monetary
statements. That us and unit as necessary with GAAP must present as a vital element of the monetary statement
a declaration recognize the accounting policies implemented by the reporting unit. Accounting policies are the
particular accounting ways an association currently applies as well as believes generally suitable to present its
monetary declarations honestly. The disclosing of those policies should include significant ends as to the
significance of values concerning the appreciation of income as well as distribution of asset prices to present.
Recognizing the accounting policies responds queries like as the way of reduction applied, assessment
way of list, as well as the paying back of subtlest as secretarial standards permit dissimilar actions for the
identical deal. Some transforms in the accounting policies should also be related if the transform is substance to
the present time or is sensibly supposed to have a material result in an afterwards time. Accounting policies
implemented with an association considerably influences the appearance of its monetary arrangement, money
flows, as well as outcomes of processes. Consequently, obviously outlining secretarial policies permit
customers of these monetary statements to evaluate monetary details with other units inside the equal business.
(Financial Statement, 2014)
In checking Verizon’s 2013 yearly description, supervision expressed their reduction way regarding
plant, goods, as well as apparatus. As declared in the yearly statement, Verizon documentations plant, assets,
and tools at price, reduce applying the straight-line way in excess of the guessed helpful life of the advantage.
By disclosing the reduction way, customers of Verizon’s monetary statements are willingly talented to evaluate
exactly financial declaration outlines with one more businesses’ as variations in net profits could basically be
the exploitation of reduction ways.
Verizon Communications 2
Another is the, Verizon’s distinguished and modernize to secretarial standard. In exacting, the business
implemented initial part of 2014 the standard modernize that gives that a responsibility correlated to an
unrecognized tax advantage must be balance beside equal control deferred tax possessions for a net functioning
defeat take forward, a parallel tax failure, if such conclusion is necessary in the occasion the doubtful tax
arrangement is barred . While Verizon was not capable to assess the force of the latest accounting pattern
modernize on the joined balance sheet, customers were complete conscious the implementation may have a
material result in an afterwards period. (Defliese, 2014)
2. Management conversation as well as analysis is a connected element of a unit’s yearly financial
statements necessary with the moment. The MD & A includes the unit’s liquidity, assets income, as well as
effects of processes also to highlighting positive as well as bad trends along with recognize important occasions
as well as doubts that influence these three issues. In spirits, the reason of the MD&A is to offer a description
justification from supervision’s outlook the corporation’s monetary situation, how a unit has done in earlier
years as well as outlook views.
In consequently performing, the MD&A tries to give shareholders with full, reasonable, as well as
impartial evaluation assisting in the choice of whether to spend or carry on to spend in an unit. Exacting
elements that must be contained in the MD &A are the unit's assignment as well as directorial arrangement.
Particulars should be regarding the unit's presentation objectives as well as consequences, organizations,
manages, as well as officially permitted fulfilment; along with the outlook results on the unit of existing,
presently-recognized requires threats, doubts, occasions, and trends.
Verizon’s MD & A represents an evaluation of enlargement of earlier years, inclinations as well as
outlook views of assets. Verizon practised income enlargement in their Wireless trade of 7.9% in the year 2013
evaluated to the year 2012. The enlargement was recognized to they require for tablets, as well as some of the
internet gadgets. A 3.7% enlarge in vend post-paid links evaluated to the year 2012 with phones including 69%
of vend post-paid mobile evaluated to 49% at in the year 2012 and also in the year 2013 post-paid phone starts
symbolized 79% of mobiles activations .
Another is the, Verizon’s distinguished and modernize to secretarial standard. In exacting, the business
implemented initial part of 2014 the standard modernize that gives that a responsibility correlated to an
unrecognized tax advantage must be balance beside equal control deferred tax possessions for a net functioning
defeat take forward, a parallel tax failure, if such conclusion is necessary in the occasion the doubtful tax
arrangement is barred . While Verizon was not capable to assess the force of the latest accounting pattern
modernize on the joined balance sheet, customers were complete conscious the implementation may have a
material result in an afterwards period. (Defliese, 2014)
2. Management conversation as well as analysis is a connected element of a unit’s yearly financial
statements necessary with the moment. The MD & A includes the unit’s liquidity, assets income, as well as
effects of processes also to highlighting positive as well as bad trends along with recognize important occasions
as well as doubts that influence these three issues. In spirits, the reason of the MD&A is to offer a description
justification from supervision’s outlook the corporation’s monetary situation, how a unit has done in earlier
years as well as outlook views.
In consequently performing, the MD&A tries to give shareholders with full, reasonable, as well as
impartial evaluation assisting in the choice of whether to spend or carry on to spend in an unit. Exacting
elements that must be contained in the MD &A are the unit's assignment as well as directorial arrangement.
Particulars should be regarding the unit's presentation objectives as well as consequences, organizations,
manages, as well as officially permitted fulfilment; along with the outlook results on the unit of existing,
presently-recognized requires threats, doubts, occasions, and trends.
Verizon’s MD & A represents an evaluation of enlargement of earlier years, inclinations as well as
outlook views of assets. Verizon practised income enlargement in their Wireless trade of 7.9% in the year 2013
evaluated to the year 2012. The enlargement was recognized to they require for tablets, as well as some of the
internet gadgets. A 3.7% enlarge in vend post-paid links evaluated to the year 2012 with phones including 69%
of vend post-paid mobile evaluated to 49% at in the year 2012 and also in the year 2013 post-paid phone starts
symbolized 79% of mobiles activations .
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Subject
Accounting