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Full Disclosure in Financial Reporting � Verizon Communications

Case study on financial reporting transparency in Verizon Communications.

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    Verizon Communications 1 Full Disclosure in Financial Reporting – Verizon Communications Use the Internet to research Verizon Communications’ financial statements, annual report, notes to the financial statements, president’s letter, and management discussion and analysis from the most recent year in order to complete this assignment. 1.Discuss the disclosure requirement on accounting policies, and identify at least two (2) examples of the most commonly requ ired disclosure. Explain the key ways in which the examples you provided are useful to financial statement users. Analyze Verizon Communications’ disclosure on accounting policies, and give your opi nion on whether or not the information is helpful for decision making. Provide a rationale for your response. 2.Explain the importance of the management discussion and analysis section of an annual report . Select three (3) items from Verizon’s management and discussion analysis of the annual report that could be useful to potential investors. Provide three (3) specific examples of how the three (3) it ems you selected could influence a potential investor’s decision to invest in Verizon. 3.Describe segmented information, and explain the way in which companies determine segments. Identify at least three (3) advantages and three (3) disadvantages of segmented financial data. Give your opinion on whether or not the advantages outweigh the disadvantages. Outline the manner in which Verizon segments i ts financial data. Suggest key actions that Verizon’s management can take in order to improve the company’s segmented financial data. Provide a rationale for your response. 4.Analyze the various types of auditor’s reports, and determine the impact that the auditor’s report has on a company’s ability to obtain financing from a bank. Identify the type of auditor’s report issued on Verizon, and spec ulate the manner in which you believe banks will perceive Verizon’s auditor’s report. 1. Accounting policies are important for sufficiently considerate the information offered in monetary statements. That us and unit as necessary with GAAP must present as a vital element of the monetary statement a declaration recognize the accounting policies implement ed by the reporting unit . Accounting policies are the particular accounting way s an association currently applies as well as believe s generally suitable to present its monetary declaration s honestly . The disclosing of those policies should include significant end s as to the significance of values concerning the appreciation of income as well as distribution of asset price s to present. Recogniz ing the accounting policies respond s queries like as the way of reduction applied , assessment way of list , as well as the paying back of subtlest as secretarial standards permit dissimilar action s for the identical deal . Some transform s in the accounting policies should also be relate d if the transform is substance to the present time or is sensibly supposed to have a material result in an afterwards time . Accounting policies implement ed with an association considerably influence s the appearance of its monetary arrangement , money flows, as well as outcome s of processes . Consequently , obviously outlining secretarial policies permit customer s of these monetary statements to evaluate monetary details with other unit s inside the equal business . (Financial Statement, 2014) In check ing Verizon’s 2013 yearly description , supervision expressed their reduction way regarding plant, goods , as well as apparatus . As declare d in the yearly statement , Verizon documentation s plant, assets , and tools at price, reduc e ap ply ing the straight - line way in excess of the guessed helpful life of the advantage . By disclosing the reduction way , customer s of Verizon’s monetary statements are willingly talented to evaluate exactly financial declaration outline s with one more business es ’ as variation s in net profits could basically be the exploitation of reduction way s.

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    Verizon Communications 2 Another is the , Verizon’s distinguished and modernize to secretarial standard. In exacting , the business implement ed initial part of 2014 the standard modernize that give s that a responsibility correlated to an unrecognized tax advantage must be balance beside equal control deferred tax possessions for a net functioning defeat take forward , a parallel tax failure , if such conclusion is necessary in the occasion the doubtful tax arrangement is barred . While Verizon was not capable to assess the force of the latest accounting pattern modernize on the joined balance sheet, customer s were complete conscious the implementation may have a material result in an afterwards period. (Defliese, 2014) 2. Management conversation as well as analysis is a connected element of a unit ’s yearly financial statements necessary with the moment . The MD & A includes the unit ’s liquidity, assets income , as well as effect s of processes also to highlighting positive as well as bad trends along with recognize important occasion s as well as doubts that influence these three issue s. In spirit s, the reason of the MD&A is to offer a description justification from supervision ’s outlook the corporation ’s monetary situation , how a unit has done in earlier years as well as outlook view s. In consequently perform ing, the MD&A tries to give shareholder s with full , reasonable , as well as impartial evaluation assisting in the choice of whether to spend or carry on to spend in an unit . Exacting element s that must be contained in the MD &A are the unit 's assignment as well as directorial arrangement . Particulars should be regarding the unit 's presentation objective s as well as consequence s, organization s, manage s, as well as officially permitted fulfilment ; along with the outlook result s on the unit of existing, presently - recognized requires threat s, doubts , occasion s, and trends. Verizon’s MD & A represent s an evaluation of enlargement of earlier years, inclination s as well as outlook view s of asset s. Verizon practised income enlargement in their Wireless trade of 7 . 9 % in the year 201 3 evaluate d to the year 2012. The enlargement was recognized to the y require for tablets, as well as some of the internet gadget s. A 3 . 7 % enlarge in vend post - paid link s evaluate d to the year 2012 with phones includ ing 69 % of vend post - paid mobile evaluate d to 49 % at in the year 2012 and also in the year 2013 post - paid phone start s symbolized 79 % of mobile s activations .

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