Question
Accel Networking became a public company through an IPO (initial public offering) three weeks ago. You are looking forward to the challenges of being assistant
Accel Networking became a public company through an IPO (initial public offering) three weeks ago. You are looking forward to the challenges of being assistant controller for a publicly owned corporation. One such challenge came in the form of a memo in this morning's in-box. "We need to start reporting comprehensive income in our financials," the message from your boss said. "Do some research on that, will you? That concept didn't exist when I went to school." In response, you sought out the financial statements of Cisco Systems, the networking industry leader. The following are excerpts from disclosure notes from Cisco's 2019 annual report:
- Locate the financial statements of Cisco in the Investor Relations section of Cisco's website. Search the 2019 annual report for information about how Cisco accounts for comprehensive income. What does Cisco report in its balance sheet for 2019 Accumulated other comprehensive income?
- Review the 2019 Annual Report statements and notes/disclosures to discover items that "drove" the change in Comprehensive Income from 2018 to 2019 fiscal year ends. List and briefly describe some of those items in your response.
- Access the free "Basic View" of the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Identify the specific eight-digit Codification citation(XXX-XX-XXX) from the authoritative literature that describes the two alternative formats for reporting comprehensive income.
- List and briefly describe another publicly traded company you believe would be a good reference, in addition to Cisco Systems. Provide a web link to the annual report for the additional company you reference.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started