1. Collect a most recent 10-K for at least three years of financial data, including financial statements, their footnotes, and management discussion for ONE of the following primary firms: (Note: DONT print out 10-K.)
   1. ConocoPhillips (COP)
   2. Occidental Petroleum

2. Summarize the management discussion and analysis. Pay close attention to the adjective terms in the description they use to excuse themselves from unsatisfactory performance. Do you think that the firm discloses its financial situation sufficiently? (10 points)

2. Comment on the accounting treatments of the primary firms. To do this, you need to read management discussion and analysis and footnotes carefully. In general, your comments should concentrate on whether the firms are conservative or not for account classification and estimates, and whether there are accounting policy changes and why. If the firms use different accounting methods, such as for depreciation and amortization, you need to specify them. Your evaluation should be based upon the criteria we have learned in this course and the accounting quality hierarchy. Particularly, concentrate on the following issues: (25 points)

1. Do the firms recognize their revenue and related expenses properly? Explain. (You need to support your evaluation with your understanding of management discussion and analysis, and the footnotes)
2. Examine accounting quality for fixed assets and intangible assets. Pay close attention to the valuation and estimation methods used. Explain. (You need to support your evaluation with your understanding of management discussion and analysis, and the footnotes.)
3. Review liability recognition and related expenses. Explain whether you agree or disagree with the treatment of the firms. (You need to support your evaluation with your understanding of management discussion and analysis, and the footnotes.)