C. Terry Grant
Associate Professor of Accounting
University of Southern Mississippi
Phone: (228)867-2621
E-mail: t.grant@usm.edu

For this case, students will use library and Internet research tools to obtain a richer understanding of a student selected accounting issue. The tools and skills developed will help prepare students for the dynamics of the practice of professional accounting. Every student will select a company that is dealing with an accounting related issue. These companies will be identified in a recent (November 1, 1998 up to the present day) Interactive Wall Street Journal article. As an example, an appropriate research topic may involve a company that announced a change in accounting principle, announced the purchase of another entity, or announced its use of financial derivatives. The possibilities are numerous.

To ensure that all cases are original and unique, each student must get their choice of company and topic pre-approved. Once approved by the instructor on a first-come basis, no other student will be permitted to use the same company and topic.

Specifically, here is an outline of the assignment:

  1. Read the Interactive Wall Street Journal (http://interactive.wsj.com) to locate a company that is dealing with an accounting related issue. Articles are easily identified by setting up personal portfolios based on accounting subject matter of interest to you. Download the article, highlight the accounting issue and major points, and bring it to the instructor for approval of company and topic. Once your article has been approved, you are ready for step 2.However, keep the article because you will need to attach it to your case.
  2. Research the authoritative accounting guidance on the related issue using your 1999 GAAP Guide. Photocopy the pages which best summarize the appropriate guidance. Highlight the major points and attach these pages to your case.
  3. If the accounting issue is covered by a FASB SFAS, access the FASB's web page (http://www.rutgers.edu/Accounting/raw/fasb/). Download the summary pages which provide the necessary guidance on this accounting issue. Highlight the major points and attach it to your case.
  4. Access the FASB's Original Pronouncements of Accounting Standards that is on reserve in the library. Photocopy the pages that best summarize the appropriate accounting guidance (FASB SFAS, APB Opinion or CAP ARB). Determine the appropriate accounting treatment and disclosure of the related accounting issue. Highlight the major points and attach these pages to your case.
  5. Access the AICPA's Accounting Trends and Techniques that is on reserve in the library. Photocopy the appropriate pages regarding the suggested note format of the accounting issue. Highlight the suggested note format the company should use to disclose this accounting issue in their next set of financial statements. Attach it to your case.
  6. Access EDGAR on the SEC's web page (http://www.sec.gov/). Download the notes of the most recently available annual or quarterly financial statements (Form 10K or 10Q) for your specific company. When a similar note exists that could be used to disclose the accounting issue, highlight that particular note. Attach all of the notes for this company to your case.
  7. Write a chronological summary of your findings. Your summary should explain the accounting issue, cite and summarize the authoritative guidance, explain how this issue will impact the company's financial statements (which statements and how), and explain how the accounting issue should be disclosed in the notes to the financial statements.
  8. Cases should look professional. Cases should have a cover page, table of contents, and tabs for each section. Carefully check your work for spelling and grammar errors. Cases should be bound in a three-ring folder. All attachments should be neatly attached or copied on 81/2 x 11-inch paper and bound and tabbed in appropriate order. Use 1 inch margins on the top, bottom, and sides of your paper. Responses to the cases should be three to six typed pages, not counting the attachments, cover page and table of contents. Cases will be graded on the basis of relevance, thoroughness, content and writing style. Poorly written cases will be returned to the student for revision. A penalized grade will be awarded after an appropriate revision is completed.