Research Assignment: Accounting for Business Combinations and Consolidated Financial Statements In this assignment, you will explore the accounting standards and practices related to business combinations and consolidated financial statements. You will also analyze the financial performance and position of a parent company and its subsidiaries. Instructions: • Choose a publicly traded parent company that has one or more subsidiaries (notify me via email). You can use any source of information, such as the company’s website, annual reports, SEC filings, etc. • Write a report that covers the following aspects: • Provide a brief overview of the parent company and its subsidiaries, including their main products, markets, and competitors. • Explain the type of business combination that occurred between the parent company and its subsidiaries, such as merger, acquisition, joint venture, etc. Provide the date, price, and method of payment for each business combination. • Describe the accounting method used by the parent company to account for its investments in its subsidiaries, such as equity method, cost method, or acquisition method. Explain the rationale for choosing this method and how it affects the parent company’s financial statements. • Prepare a consolidated balance sheet and a consolidated income statement for the parent company and its subsidiaries as of the end of the most recent fiscal year. You can use the financial statements of the parent company and its subsidiaries as a starting point, and make any necessary adjustments and eliminations. You can also use any spreadsheet software, such as Excel, to perform the calculations and present the results. • Analyze the financial performance and position of the parent company and its subsidiaries based on the consolidated financial statements. You can use any financial ratios, such as profitability, liquidity, solvency, efficiency, etc. Compare the results with the industry averages and the parent company’s competitors. • Discuss the advantages and disadvantages of business combinations and consolidated financial statements for the parent company, its subsidiaries, and the users of financial information. Provide examples and evidence to support your arguments. • Your report should be between 5 to 10 pages long, excluding any tables, charts, or appendices. You should follow the APA style for formatting, citations, and references. You should use at least five credible sources of information, such as academic journals, books, newspapers, etc. • You should submit your report as a Word document or a PDF file to the instructor by Wednesday, December 6, 2023 at 11:59pm. You should also submit your spreadsheet file that contains the consolidated financial statements and the calculations. Grading Criteria: Your report will be graded based on the following criteria: • Content: The report should cover all the required aspects and demonstrate a thorough understanding of the accounting standards and practices related to business combinations and consolidated financial statements. The report should also provide a clear and coherent analysis of the financial performance and position of the parent company and its subsidiaries. The report should use relevant and reliable sources of information and provide proper citations and references. • Organization: The report should have a clear structure and flow, with an introduction, a body, and a conclusion. The report should use headings, subheadings, paragraphs, and transitions to organize the information and guide the reader. The report should also use tables, charts, or appendices to present the consolidated financial statements and the calculations, and explain them in the text. • Writing: The report should use clear, concise, and professional language, with correct grammar, spelling, and punctuation. The report should also follow the APA style for formatting, citations, and references. The report will be worth 100 points, and the breakdown of the points is as follows: • Content: 60 points • Organization: 20 points • Writing: 20 points *** CURRENTLY TRYING TO GET THE CORRECT LINKS BUT IF YOU CAN DO WITHOUT THE BELOW RESOURCES, THEY ARE NOT REQUIRED. AS SOON AS I GET THEM I SEND TO YOU.** Resources: You can use the following resources to help you with this assignment: • Accounting for Business Combinations and Consolidated Financial Statements: This is a textbook that provides a comprehensive and practical guide to the accounting for business combinations and consolidated financial statements. You can access the PDF version for free or buy the hard copy. • Accounting for Business Combinations and Consolidated Financial Statements: This is a PowerPoint presentation that summarizes the main concepts and examples of the accounting for business combinations and consolidated financial statements. You can download the file for free or view it online. • Consolidated Financial Statements: This is a website that provides a step-by-step tutorial on how to prepare consolidated financial statements using excel. you can access the instructions, examples, and tables for free.
