Computer Project Essay

982 WordsJan 14, 20114 Pages
Computer Project Alternative Investment Methods, Goodwill Impairment, and Consolidated Financial Statements In this project you are to provide an analysis of alternative accounting methods for controlling interest investments and subsequent effects on consolidated reporting. The project requires the use of a computer and a spreadsheet software package (Microsoft Excel®, Lotus 123®, etc.). The use of these tools allows assessment of the sensitivity of alternative accounting methods on consolidated financial reporting without the necessity of preparing several similar worksheets by hand. Also, by modeling a worksheet process, a better understanding of accounting for combined reporting entities can result. Consolidated Worksheet Preparation You will be creating and entering formulas to complete four worksheets. The first objective is to demonstrate the effect of different methods of accounting for the investments (equity, cost, and partial equity) on the parent company’s trial balance and on the consolidated worksheet subsequent to acquisition. The second objective is to show the effect on consolidated balances and key financial ratios of recognizing a goodwill impairment loss. The project requires preparation of the following four separate worksheets: 1. Consolidated information worksheet (provided below). 2. Equity method consolidation worksheet. 3. Cost method consolidation worksheet. 4. Partial equity method consolidation worksheet. If your spreadsheet package has multiple worksheet capabilities (e.g., Excel), separate worksheets can be used; otherwise, each of the four worksheets can reside in a separate area of a single spreadsheet. In formulating your solution, each worksheet should link directly to the first worksheet. Also, feel free to create supplemental schedules to enhance the capabilities of your worksheet. Project Scenario

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