This writing assignment is very complicated and needvery professional knowledge of accounting so PLEASE READ ATTACHMANNTS CAREFULLY AND FOLLOWING THE INSTRUCTIONS.

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Acc 402 Writing Assignment Policy, Rules & Assignments: Each of the writing assignments will be graded on a pass/fail basis. As I am not an English professor, I cannot grade the assignments in the same fashion as a professor of English. However, I do know when a document is well written and when a document is poorly written. As such, if the writing assignment you submit is, in my subjective opinion, is substandard for the profession you are entering, I will simply send the assignment back with the term; Rewrite. You may rewrite the assignment three times. After two failed attempts, you have one final attempt to submit the assignment for full credit. Prior to submitting your third attempt, you must schedule an appointment with me in order to discuss your writing. If, upon the third submission the assignment is still substandard you will earn a grade of zero for the assignment. I, and the Department of Accounting, cannot stress enough the importance for effective, concise, and professional writing skills that are needed for a successful professional accounting/business career. The writing assignments for this course will be email based. You will be asked to prepare a professional, concise, and understandable message. The emails you will be asked to write are a mix of interoffice and client communications. You will be asked to respond to a variety of different situations. You may be asked to clarify a specific Accounting Standard Codification (ASC) for a partner or manager, asked to obtain documentation from a client, asked to respond and clarify a message you provided earlier (to a client or team member), etc. The following are basic rules you should follow when writing a professional email: 1. Address Messages Carefully ~ a. Make sure you are replying or sending your message to the intended audience. You do not want to make the mistake of sending a message you meant for a colleague to be sent to the entire office. Nor do you want to send an email containing client information to external parties. 2. Write a Subject Line ~ And Make It A Strong Subject Line ~ a. Make sure you add a subject line to your emails. In the professional world, you will be sending and receiving many emails to and from numerous people. If you, or the recipient, ever need to go back to see the content of a previous message, the first place to find the desired email is to search the topic which should be mentioned in the subject line. 3. Begin with a Salutation ~ a. Know your audience. If you are familiar with the recipient, you can simply start an email with: \"Hi John,\" b. If you are unfamiliar with the recipient, use a formal beginning: \"Dear Mr. Tao,\" i. In today's world, when formally addressing a female, always use Ms. 4. Put Important Ideas First ~ a. Get to the point. We are busy. 5. Use Proper Grammar and Punctuation ~ a. DO NOT MISSPELL WORDS. b. PROOFREAD BEFORE YOU HIT SEND. c. Know your audience and do not write with company or industry jargon unless you are certain the recipient will understand. 6. Use an Email Signature ~ a. Most companies and firms will have a standard email signature you will be required to use. However, it is good practice to begin using a signature today. You can use the following as a guide: Your Name Accounting Student University of Nevada, Las Vegas Lee Business School 4505 S. Maryland Parkway Las Vegas, NV 89154 (555) 123-4567 (Optional) Your.Name@something.something b. Until you are provided with a professional email address, create a professional email address. Do not use a foolish email address (e.g. toocoolforschool@hotmail.com). Create an email that will allow folks to remember you (in the way you would like to be remembered; as a professional). The best practice is to create a new email address with your name (e.g. Firstname.Lastname@gmail.com). 7. Use Attachment Carefully ~ a. Make sure the attachment you are discussing in your email is attached. b. Get in the habit of looking at your sent emails to make sure what you meant to send is what you have sent. You do not have to do this for every email, but you should review important messages you have sent. This will get you in the habit of making sure you have sent the correct information and attachments to the correct person(s). A best practice in the beginning is to bcc you. This way you will be able to see the exact message your recipient has received and feel confident that your message will be received as you intended. 8. Compose Your Message As If It Will Be Read By Everyone ~ a. In the professional accounting/business world, do not put anything in an email that you would not want to see on the front page of the Wall Street Journal; digital lasts forever. b. If you are upset, angry, irritated etc. Wait 5 minutes after writing your scathing email prior to hitting send. If after 5 minutes you still want to send the angry email, wait 5 more. Do not send an angry email. Digital lasts forever and can very easily be taken and used out of context; or worse, it can be subpoenaed. 9. Get Off Your Email ~ a. Email is easy, efficient, and distant. However, do not use email for everything you need to obtain or discuss. Be present in your colleague and client relationships. Take a walk and talk from time to time. You will find you will be able to obtain more information and feel better about requesting information when you have developed a face to face relationship. To: From: Daisy Fuentes (2 hours ago) Subject: Big Island Operating Segments Hi Staff Accountant, Can you please review the background information below to help me answer our client's question? We have been asked by our client to determine how they should report the company's various operating components. As you will see in the information below, the theme parks have several different components that may be considered operating segments. Please refer to ASC 280-10-50-1 & 50-9 and let me know how we should advise the client to segment their operations for SEC reporting purposes. Thanks, Daisy ________________ Daisy Fuentes, CPA Audit Senior DD&G Auditing 3800 Hughes Drive Las Vegas, NV 89119 (702) 555-8828 fuentesd@ddg Assignment Notes: 1. Read through the Writing Assignment Policy located in WebCampus. 2. The assignment is to be submitted via email to: acc402writingreply@gmail.com a. No credit will be given if the assignment is not submitted, by its due date, to the correct email address. b. Reply directly in the body of the email. Do not attach a document with you answer. 3. Any written correspondence regarding the writing assignment must be addressed to the emails author. a. I will not answer any writing assignment questions through my ryan.enlow@unlv email address. 4. If you have questions you would like to ask in person, I am happy to answer them on behalf of the professional. 5. This assignment is to simulate an on the job scenario that happens several times a day, every day, in accounting. a. My goal is to create a real world environment. Therefore, when working on a writing assignment I do not exist. You are communicating and talking to the accounting professional that has asked for your help. Copyright 2014 Deloitte Development LLC All Rights Reserved. Background Big Islands Parks & Entertainment (\"Big Islands\" or \"the Company\") is a leading entertainment company that owns 10 premier theme parks as follows: Big Islands Georgia, Discovery Adventure Place, White Rapids Orlando, Big Islands North Carolina, Big Islands Washington, Still Water Thrills Orlando, Island Adventure Cove, Still Water Thrills Charlotte, White Rapids LA, and Adventure Kids Cove. Each of the Company's 10 theme parks engages in similar business activities (e.g., ticketing, food, parking, and games). Revenues are earned for each of the separate business activities conducted at the 10 parks. Each park is designed to have a small, full-time employee base with a large seasonal staff that is hired each year. Employee costs represent the most significant annual expenditure by each park. Employees within the park are assigned to a base business activity but have the ability to assist other business activities within the park (i.e., a parking employee can also serve the food stands if necessary) and regularly do so. The movement of employees between businesses is not tracked for financial reporting purposes, and general park expenses are not allocated to the various business activities within each park. The operating results of each park are reviewed monthly by segment management (i.e., each park has a president that reports to the respective chief operating officer (COO) of that park who is directly accountable to, and maintains regular contact with, the Company's chief executive officer (CEO) to discuss operating activities, financial results, forecasts, and future plans). In addition, the CEO meets with each park's president several times per year to discuss budget/actual and forecasts. The Company has a strategy committee that act together to make operational recommendations such as allocating resources. The Company's CEO participates as a member of the strategy committee but has the ability to make independent decisions that may not be in line with the strategy committee's recommendations. The board of directors of Big Islands does not have involvement with the day-to-day operations of the parks. The parks are designed to provide a similar guest experience and provide the same basic business activities (e.g., ticketing, food, parking, and games) even though the rides and attractions of the parks vary. Each park caters to families seeking leisure or tourist activities. The large parks have a more diverse (international) group of customers because of location. While the Company does not market its products differently to those customers, it does provide a few additional services including bilingual staff and certain internationally themed celebrations. Regardless of the location or customer base, the Company's overall strategy is to ensure each park is a premiere theme park. Although the Company operates parks in several states throughout the continental United States, the industry through which it operates, including food handling, water quality, ride operations, and animal-related permitting, are all monitored nationally; there are no significant differences in laws or regulations in the states in which the Company operates its parks. Management Reporting The CEO receives a monthly reporting package that includes a consolidated profit and loss statement (P&L) and a P&L for each of the 10 parks. The consolidated P&L and the P&Ls by park include revenues by business activity (e.g., ticketing, food, parking, and games) as well as total revenue. Expenses, including wages and other general overhead, are allocated to each park and are included in each park's P&L that is presented to the CEO. Expenses are reported in total in the P&L for each individual park since expenses are not allocated to each business activity. Although the CEO receives park-level data, the CEO makes decisions on a Company-wide or aggregated basis as opposed to a park-by-park basis (i.e., rides, attractions, shows, and seasonal events are similar in each park). The consolidated P&L and the P&L by park within the monthly reporting package include certain financial metrics considered to be important by the CEO. Those metrics are total revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. A summary of some of the information presented to the CEO is included at the end of the case. Copyright 2014 Deloitte Development LLC All Rights Reserved. Discussions with the CEO and a review of competitors indicate that attendance is a critical business metric used by competitors in the industry. The CEO, however, uses adjusted EBITDA to make investment and allocation decisions to drive attendance growth. In addition, adjusted EBITDA is a significant factor in compliance with debt covenants because it includes an allocation of both employee and other overhead costs and the compensation of top executives of the Company. Since total revenue ultimately drives profit, it is also included in the monthly reporting package. The Company analyzes long-term growth rates of revenue in its analysis, noting the compound annual growth rate (CAGR) over a 10-year period is between 2 percent and 4 percent, with the higher range occurring because of the attractions at newer parks. The CAGR projected for 2013-2017 is between 2 percent and 3 percent for each park. Financial metrics analyzed by the CEO are highly dependent on the opening of new attractions and, therefore, the metrics may fluctuate slightly from year to year on the basis of the capital spending time frame and opening of new attractions. Information Provided to Board of Directors The board of directors is provided with a consolidated P&L that includes total revenue and adjusted EBITDA similar to the P&L received by the CEO. The board of directors does not receive information on a park-by-park basis or any other segmented grouping. Copyright 2014 Deloitte Development LLC All Rights Reserved. ACTG 6670 Case 15-3 Big Islands Amusement Park Big Islands is a large entertainment company that owns 10 theme parks. Each one of the parks sells tickets, foods, and games. Each parks earn it own revenue and have a small, full time worker and large seasonal worker that is hired each year. Employee salary represents the largest expenditure by the park. Segment management reviews the operating results of each park and shares the results with the Chief operating officer (COO). The (COO) of the park communicates to the Chief executive officer (CEO) the operating activities and financial results. A Consolidated profit and loss prepared and sends to the CEO every month for each of the of the 10 parks. The consolidated (P&L) includes details about revenues by business activity. Expenses such as wages and others general overhead, are allocated to each park. The expenses for each park reported in total in the P&L since expenses are not allocated to each business activity .Also the CEO receives park level data ,the CEO makes decisions on a Company -wide or aggregated basis as opposed to a park by park basis. The background information will help to answer the required questions. Applicable GAAP ASC 280-10-50-5 ASC 280-10-50-8 ASC 280-10-50-10 ASC 280-10-50-1 ASC 280-10-50-2 ASC 280-10-50-13 ASC 280-10-50-12 ASC 280-10-50-11 1-The chief operating decision maker is the CEO of the Big Islands according to ASC 280-1050-5, the term chief operating decision maker identifies a function, not necessarily a manager with a specific title. That function is to allocate resources to and assess the performance of the segments of a public entity. Often the chief operating decision maker of a public entity is its chief executive officer or chief operating officer, but it may be a group consisting of, for example, the public entity's president, executive vice presidents, and others. The CEO of the Big Islands uses the P&L to make investment and allocation decisions. Conclusion According to ASC 280-10-50-5, the CEO is chief operating decision maker, the CEO of the Big Islands uses the P&L to make investment and allocation decisions. Alternative The chief operating decision maker is the president (segment manager) of each park according to ASC 280-10-50-8, the chief operating decision maker also may be the segment manager for certain operating segments. A single manager may be the segment manager for more than one operating segment. The CEO of the company meets with each park's president several times per year to discuss budget/actual and forecasts. Also the CEO makes decisions on a Company-wide activity or aggregated basis as opposed to a park-by-park basis. Conclusion According to ASC 280-10-50-8, the president of each park is the chief operating decision maker because he or she reviews the operating results and take the necessary action based in budgets. 2- The Big Islands is a private company and it is not required to report the operating segments according to FASB statement no.131. It is required for public enterprises. Also GAAP explains the required operating segments for public companies according to ASC 280-10-50-1, an operating segment is a component of a public entity that has all of the following characteristic Alternative If we assume that Big Islands is a public company .According to ASC 280-10-50-1, an operating segment is a component of a public entity that has all of the following characteristics: a. It engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity). b. Its operating results are regularly reviewed by the public entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. c. Its discrete financial information is available. According to ASC 280-10-50-11, Operating segments often exhibit similar long-term financial performance if they have similar economic characteristics. For example, similar longterm average gross margins for two operating segments would be expected if their economic characteristics were similar. Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the objective and basic principles of this Subtopic, if the segments have similar economic characteristics, and if the segments are similar in all of the following areas a. The nature of the products and services b. The nature of the production processes c. The type or class of customer for their products and services d. The methods used to distribute their products or provide their services e. If applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities. Conclusion If we assume Big Islands is a public company. Big Islands has ten operating segments according to ASC 280-10-50-01 and ASC 280-10-50-11.Big Islands Georgia, North Carolina, Washington, Still Water Thrills Orlando and Still Water Thrills Charlotte., White Rapids Orlando, Discovery Adventure Place, Island Adventure Cove, White Rapids LA and Adventure Kids Cove. 3) According to ASC 280-10-50-10, a public entity shall report separately information about each operating segment that meets both of the following criteria: a. Has been identified in accordance with paragraphs 280-10-50-1 and 280-10-50-3 through 509 or results from aggregating two or more of those segments in accordance with the following paragraph b. Exceeds the quantitative thresholds in paragraph 280-10-50-12 According to 280-10-50-12, a public entity shall report separately information about an operating segment that meets any of the following quantitative thresholds. Its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10 percent or more of the combined revenue, internal and external, of all operating segments. According to ASC 280-10-50-13, An entity may combine information about operating segments that do not meet the quantitative thresholds with information about other operating segments that do not meet the quantitative thresholds to produce a reportable segment only if aggregation is consistent with the objective and basic principles of this Topic, the segments have similar economic characteristics, and the operating segments share Conclusion: No it wouldn't be acceptable for the company to aggregate the operating segments into a single reportable segment for financial statements disclosure according to ASC 280-10-50-10 and ASC 280-10-50-12.but an entity may combine information about operating segments that do not meet the quantitative thresholds according to ASC 280-10-50-13. I think we have one alternative. The GAAP is very clear about the aggregation of the operating segments