week 5 assignmnet

ACCT 540

Week 5 Assignment

The Sample Brief Memorandum in the back of our text is an excellent example of combing everything we have learned so far in this course with regards to content, but it lacks proper APA format when using in-text citations, and it does not include a works cited. It is evident in this memorandum that the research process was performed efficiently and effectively, and fully progressed through the steps of determining the relevant facts, identifying the research problem, conducting research questions, identifying the key terms on which to gather data, and finally organizing the research to propose a conclusion. In addition, the author of the memo makes references to authoritative sources and uses the plain English described by the SEC when explaining his or her findings from the research process.

The author of the sample memorandum states the relevant facts related to the research topic at the very beginning of the memorandum. I find the most significant fact to be the fact that Sony’s financial statements did not disclose the losses from Sony Pictures. The facts stated help the reader to identify the problems related to this topic. Namely, the problems that need to be addressed include misrepresentations of goodwill, and financial statement disclosures for different segments. Once the problems are understood, the researcher can proceed to ask the research questions that will lead him or her to a solution. Based on the issue regarding goodwill, the author of this memo inquires if an annual write-down is necessary according to FAS 142. Also, the author questions the need for financial statement disclosures of two separate segments.

After the research questions are developed, the researcher should identify key terms in order to help narrow the scope of the research process. It is evident that the author of the sample memorandum chose goodwill and segment disclosure as his main key search terms. The memorandum contains a section for each key term that explains the findings on each key term and how the findings relate to the research questions. The information gathered is from authoritative sources, namely the IAS and the IFRS, and is appropriately cited.

Following the data gathered on the key terms in the memorandum is a section that explains how the data gathered applies to the particular subject. This section helps to communicate the results of the findings to the reader, and it also provides support for the conclusions. While it is essential to use the SEC’s plain language in describing all of your findings throughout the research process, I feel that it is most important when you are trying to apply your research to your research topic in order to develop a conclusion. This is because the application of your research must be described in a way that is clear and concise in order to avoid any misinterpretations of your conclusion.

The SEC’s plain English handbook describes plain English as a way of presenting complex information in a manner that is clear and orderly so that potential investors can easily understand the information. Plain English involves analyzing the information you wish to present, and deciding what information the investors need to know in order to make knowledgeable decisions. A document that is written in plain English should use words sparingly and at a level that can be understood by the reader. The sentence structure should be brief, the tone should be concise yet welcoming, and the design should be visually appealing (SEC, 1998).

Although the memorandum makes references to the authoritative sources used, the sources are not cited correctly. In text citation for authoritative sources in APA format should be enclosed in parentheses at the end of the sentence where the authoritative source is referenced. For example, if the writer is referencing the FASB accounting standard 310, the in text citation should be (FASB ASC 310, 2011). The sample memorandum in our text does not enclose the citation in parentheses, and does not include a publishing date. Further, the memorandum lacks a works cited that lists all of the authoritative sources used and is in APA format. A works cited is vital for any written piece that makes references to outside sources.

Lastly, the conclusions that were reached in the memorandum were concise, easy to understand, and directly relate to the problems addressed in the memorandum. The author concludes that FAS 142 requires the write-down of goodwill for an acquired entity with continuous losses, and that the segment disclosure needs revising under FAS 131. Despite the lack of proper APA citation, this sample memorandum is easy to understand, and the authoritative sources are still referenced enough to where the reader should be able to find the source of information if he or she wishes to read further into the topic.

Works Cited

United States. (1998). A plain English handbook: How to create clear SEC

disclosure documents. Washington, DC (450 5th St., N.W., Washington 20549: The Office.

Weirich, T., Pearson T., & Churyk N. (2014). Accounting and auditing research

tools and strategies (8th ed.). Hoboken, NJ: John Wiley & Sons, Inc.