Need help with milestone 2 ACC 690 the attached file includes the rubric and guidelines!

Please read the rubric CAREFULLY, it is really important to address each section!

ACC 690 Milestone Two Guidelines and Rubric Overview: The final project for this course is the creation of a portfolio consisting of a report, spreadsheets, and a PowerPoint presentation. You will be placed in a real-world scenario in which you will take the role of an associate in a certified public accountant (CPA) firm. The CPA partners in the scenario would like to help you grow within the firm by getting you more contact with some of the larger clients. You will address questions from one of the firm's most influential and growing clients by assembling and presenting the necessary information in report and presentation format. Your presentation should include spreadsheet examples. Topics addressed in the portfolio will cover partnership formation, bankruptcy, and acquisition of another company (which may be international). Your three milestone assignments will consist of shorter reports and supporting spreadsheets, which will prepare you for completing a comprehensive report, spreadsheets, and presentation. You should use your instructor's feedback from the milestone submissions to improve your final report, spreadsheets, and presentation. Prompt: In Milestone Two, you will submit a report as well as the necessary spreadsheets for Section II (Parts B-F) of the final project. You will discuss interim reporting requirements under generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS), as well as provide an example financial statement illustrating what the interim report should entail. You will also discuss reporting requirements for business segments and discuss transparency in financial reporting. Lastly, you will consider the company's potential international business deals, such as the impact of foreign exchange rates and the methods for translating financial statements. You will also create a hypothetical example demonstrating the translation process, using the two methods, to submit with your paper. Specifically, the following critical elements must be addressed: II. Corporation: The company is also considering structuring its business as a corporation, but is aware that there are a lot of complex issues to consider when accounting for an incorporated entity. The company is concerned about the following key areas: B. What interim reporting requirements would the company have as a corporation? Describe the guidance related to interim financial statements under GAAP and IFRS. C. Generate a hypothetical financial statement illustrating what that interim reporting entails. Ensure all information is entered accurately. D. Determine if the interim reporting requirements are the same under GAAP and IFRS. Provide an example to support your response. E. The company also heard that they may have to report some of their business segments separately if they opt to incorporate. 1. Appraise one of the processes used to identify which segments would have to be reported separately. Provide examples to support your response. 2. How is this process effective in supporting transparency in financial reporting? Defend your response. 3. Provide suggestions to improve this process in an effort to sustain transparency. Defend your rationale. F. When incorporating, it is important to consider whether or not the company's business deals internationally. 1. Summarize the impact of foreign exchange rates on the company's financial statements. What risks do foreign exchange rates pose? 2. What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used? 3. Compose a hypothetical example to demonstrate the translation process using the two methods. Ensure all information is entered accurately. Guidelines for Submission: Your report must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources (in addition to your textbook) cited in APA format. Your accompanying spreadsheets must be submitted as Microsoft Excel files. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Corporation: Interim Reporting Proficient (100%) Describes the interim reporting requirements the company would have as a corporation and the guidance related to interim financial statements under GAAP and IFRS Corporation: Financial Statement Generates a hypothetical financial statement illustrating what the interim reporting entails and ensures all information is entered accurately Determines if the interim reporting requirements are the same under GAAP and IFRS and provides an example to support response Appraises one of the processes used to identify which segments would have to be reported separately and provides examples to support response Corporation: GAAP and IFRS Corporation: Segments Corporation: Transparency Evaluates the effectiveness of the process in supporting transparency in financial reporting and defends response Corporation: Suggestions to Improve Provides suggestions to improve the process and defends rationale Needs Improvement (75%) Describes the interim reporting requirements the company would have as a corporation but does not describe the guidance related to interim financial statements under GAAP and IFRS, or description is cursory or has inaccuracies Generates a hypothetical financial statement illustrating what the interim reporting entails, but there are inaccuracies Not Evident (0%) Does not describe the interim reporting requirements Value 10 Does not generate a hypothetical financial statement 10 Determines if the interim reporting requirements are the same under GAAP and IFRS but example provided does not support response, or does not provide an example Appraises one of the processes used to identify which segments would have to be reported separately but does not provide examples to support response, or appraisal is cursory or has inaccuracies Evaluates the effectiveness of the process in supporting transparency in financial reporting but does not defend response, or defense is weak or illogical Provides suggestions to improve the process but does not defend rationale, or defense is weak or illogical Does not determine if the interim reporting requirements are the same under GAAP and IFRS 10 Does not appraise one of the processes 10 Does not evaluate the effectiveness of the process in supporting transparency in financial reporting 10 Does not provide suggestions to improve the process 10 Corporation: Impact Summarizes the impact of foreign exchange rates on the financial statements and determines the risks they pose Corporation: Two Methods Describes the two methods used to translate financial statements and how the functional currency plays a role in determining which is used Corporation: Translation Process Composes a hypothetical example demonstrating the translation process using the two methods and ensures all information is entered accurately Submission has no major errors related to citations, grammar, spelling, syntax, or organization Articulation of Response Summarizes the impact of foreign exchange rates on the financial statements but does not determine the risks they pose, or summary is cursory or has inaccuracies Describes the two methods used to translate financial statements but does not describe how the functional currency plays a role in determining which is used, or description is cursory or has inaccuracies Composes a hypothetical example demonstrating the translation process using the two methods but example contains inaccuracies Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not summarize the impact of foreign exchange rates on the financial statements 10 Does not describe the two methods of translation 10 Does not compose a hypothetical example 10 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 10 100% Corporation: The company is also considering structuring its business as a corporation, but is aware that there are a lot of complex issues to consider when accounting for an incorporated entity. The company is concerned about the following key areas: B. What interim reporting requirements would the company have as a corporation? Describe the guidance related to interim financial statements under GAAP and IFRS. Accountingtools.com defines interim reporting as the reporting of the financial results of any period that is shorter than a fiscal year. Usually required for any publicly held company, and typically involves the issuance of three quarterly financial statements each year. These statements include a balance sheet, income statement, and statement of cash flows. According to the U.S. Securities and Exchange Commission (SEC), GAAP nor IFRS requires interim reporting; however, both provide guidance in situations when interim reporting is required or when an entity elects to report on an interim basis. GAAP and IFRS both require interim reporting be based on the same accounting principles that are used to prepare the annual financial statements. IFRS considers interim periods as discrete account periods, while GAAP considers interim periods as a component of an annual period. C. Generate a hypothetical financial statement illustrating what that interim reporting entails. Ensure all information is entered accurately. A hypothetical financial statement illustrating what interim reporting entails is found on the attached Excel worksheet under \"Financial Statement\". D. Determine if the interim reporting requirements are the same under GAAP and IFRS. Provide an example to support your response. Interim reporting requirements are not the same under GAAP and IFRS. Below is a comparison of required concepts: GAAP IFRS Relevant guidance ASC 270 IAS 34 Allocation of costs in interim periods Interim periods are viewed as integral parts of an annual reporting period. With the exception of income taxes, each interim period is considered a discrete reporting period, rather than an integral part of an annual reporting period. Certain costs that benefit more than one period may be allocated among those periods. Interim tax provision Annual worldwide tax rate is used to record interim tax provisions If a cost benefits more than one period, that cost must meet the definition of an asset at the end of an interim period to be deferred. In addition, a liability for accrued expenses must represent an existing obligation at the end of an interim period. A separate effective tax rate is used for each jurisdiction and applied individually to each jurisdiction's interim period results. E. The company also heard that they may have to report some of their business segments separately if they opt to incorporate. 1. Appraise one of the processes used to identify which segments would have to be reported separately. Provide examples to support your response. \"The objective of segment reporting is to provide information about the different business activities in which an enterprise engages and the different economic environments in which it operates to help uses of financial statements (Hoyle, J., Schaefer, T., & Doupnik, T. (2015).\" Operating segments that meet one or more quantitative thresholds must be reported separately. Quantitative thresholds are a revenue test, a profit or loss test, and an asset test. 2. How is this process effective in supporting transparency in financial reporting? Defend your response. Transparency in financial statements means everything is properly disclosed, easily understandable, clear, and user friendly. Segment reporting provides information about different business activities, more simply put, a breakdown of different business activities. Because analysts, investors, stakeholders, etc. need to be able to understand, evaluate, and monitor performance, it is import the financial reports are transparent. 3. Provide suggestions to improve this process in an effort to sustain transparency. Defend your rationale. To improve this, companies can provide segment information that helps users make a better assessment of the earning capacity and financial position of the business as a whole. Providing information on foreign operations instead of only foreign sales will also contribute to sustaining transparency. F. When incorporating, it is important to consider whether or not the company's business deals internationally. 1. Summarize the impact of foreign exchange rates on the company's financial statements. What risks do foreign exchange rates pose? Companies with foreign operations are required to translate results of operations from their functional currency to a single reporting currency under accounting guidelines. Fluctuating exchange rates can considerably affect financial statement trends. The results of operations are typically exchanged using a weighted average. However, \"significant shifts in currency exchange rates can have a dramatic effect on the company's revenue and profit trends (Kaempfe, 2016). The gain or loss from the exchange rate can have either a positive or negative effect on the company. It depends on which currency the transaction is designated in and which direction the exchange rate moves. 2. What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used? The two methods used to translate financial statements are the current rate method (or closing rate) and the temporal method. Functional currency is the primary currency of a foreign entity's operating environment. \"The functional currency orientation results in the following rule: Functional Currency Translation Method Translation Adjustment U.S. Dollar Temporal method Gain (loss) in Net Income Foreign Currency Current rate method Separate component of other Comprehensive Income (Hoyle, J., Schaefer, T., & Doupnik, T. (2015).\" 3. Compose a hypothetical example to demonstrate the translation process using the two methods. Ensure all information is entered accurately. A hypothetical example demonstrating the translation process using the current rate method and temporal method is in the attached excel spreadsheet, under \"Current Rate\" and \"Temporal Method\". Reference: Bragg S. (30 Mar 2011). What is interim reporting?. Retrieved from http://www.accountingtools.com/questions-and-answers/what-is-interim-reporting.html Hoyle, J., Schaefer, T., & Doupnik, T. (2015). Advanced Accounting. New York, NY: McGrawHill Education. Kaempfe, A. (April 2016). Removing the Impact of Foreign Exchange Translation from Financial Analysis. Retrieved from http://www.bkd.com/articles/2016/removing-theimpact-of-foreign-exchange-translation-from-financial-analysis.htm U.S. GAAP VS. IFRS: Interim Reporting At-A-Glance. (Dec 2012). Retrieved from http://rsmus.com/pdf/us_gaap_ifrs_interim_reporting.pdf Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers A Comparison of U.S. GAAP and IFRS. (16 Nov 2011) Retrieved from https://www.sec.gov/spotlight/globalaccountingstandards/ifrs-work-plan-paper-111611gaap.pdf