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FASB has develop new accounting standards for accounting forleases. These new standards are not covered in your text book.Research the new FASB Lease Accounting Standards and answer thefollowing questions:

1. Why did FASB develop new lease accounting standards?

2. How will accounting for leases change under these newstandards?

3. When will the new standards take effect?

4. How will the changes effect companies who lease assets/

5. Based on your reading and research do you think companies areprepared for these changes?

Submit a paper containing your answers and observationsconcerning these questions and suggestions you would make tocompanies who are preparing to implement the new standards.

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Elin Hessel
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6 Jan 2018

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GOOGLE: Morningstar® Document Research FORM 10-K GENERAL MILLS INC - GIS Filed: June 29, 2017 (period: May 28, 2017) Annual report with a comprehensive overview of the company​ FOR THE ANNUAL REPORT

Instructions: Use the financial statements from the annual report for the year ended 5/28/2017 for General Mills. The Annual Report is on MOODLE. Answer the questions after each question. Use a different font to distinguish your answer from the question. All answers should be in your own words. Do not cut and paste from the annual report. Answers will be graded for content and written communication skills. Use complete sentences.

*****MAKE A NOTATION HERE IF THE DOLLAR AMOUNTS ARE STATED IN MILLIONS.

1. Who are the external auditors for General Mills? What does their Report of Independent Registered Public Accounting firm indicate about the amounts represented in the company’s financial statements?

2. What specific title does General Mills use for its income statement? What type of income
statement does General Mills issue? (multi-step, single–step, or condensed multi-step)
Explain.

3. Did they disclose EPS as discussed in class? Explain. What about the EPS presentation
did we not discuss in ACC 3100?

4. How does General Mills define Cash Equivalents? Is this consistent with the textbook?

5. What is the amount of cash and cash equivalents reported for the year ended at May 28, 2017 and for the year ended at May 29, 2016. By how much has cash and cash equivalents increased/decreased? Show calculations.

6. Create a table illustrating the amount General Mills reports for net cash flows from operating, investing, and financing activities in its statement of cash flow for the year ended May 28, 2017. (Note: Include any effect of exchange rates on cash.) Show calculations. Compare your answers to question 5.


7. What amount is the balance in the Allowance for Doubtful Accounts at 5/28/2017? How is the estimate for Allowance for Doubtful Accounts determined?

8. What was the gross balance of trade receivables at 5/28/2017? What was the dollar amount of bad debt expense for the year ended 5/28/2017? How many accounts were written off (Dollar amount)?

9. What inventory method is used to value inventory in and out of the US?

10. What is the balance of their LIFO reserve account 5/28/2017?

11. What impact (dollar amount and increase or decrease) did the LIFO Reserve adjustment have on Cost of Goods Sold?

12. Which depreciation method(s) is used for PP& E? What estimates are made for the useful life of the different categories of assets?

13. What was total depreciation and amortization expense fiscal year ended 5/28/2017? Where were these amounts reported in the financial statements?

14. What was the major component of total PP&E? What was its amount and what percentage was it of the total for the year ended 5/28/2017?

15. What percentage of total PP&E has been depreciated as of 5/28/2017?

16. Did General Mills capitalize any interest in the fiscal year ended 5/28/2017? If so, what was the amount?

17. Did General Mills dispose of any property and equipment during the year ended 5/28/2017? If so, what was the cash proceeds?

18. Did General Mills issue more new long term debt than they paid in long term debt payments for the year ended 5/28/2017? Explain, show amounts.

19. Create a table to show the components of Comprehensive Income that was attributable to General Mills for the year ending 5/28/2107?

20. Create a table to show the components and amounts of General Mills’ Accumulated Other Comprehensive income(loss) for the year ending 5/28/2017 and 5/29/2016?

21. When does General Mills review impairment for long-lived assets? What is their measurement of an impairment loss based on for long-lived assets?

22. What is the amount of General Mills goodwill? Did General Mills have an impairment loss on Goodwill during fiscal year ended 5/28/2017? What are the standards for testing goodwill(How often and how is it tested)?

23. List any other indefinite life intangibles? How much was the impairment loss General Mills recorded for fiscal year ending 5/31/2015 and why was impairment indicated?

24. The Financial Accounting Standards Board (FASB) issued two new accounting requirements in 2017 that were mentioned in General Mills’ annual report? What are the standards and what is the expected impact of these new standards to the financial statements?

25. General Mills uses the three-level fair value hierarchy for disclosure. What level are the majority of their assets and liabilities measured at 5/28/2017? According to your textbook, how is this level defined?

26. When does General Mills recognize revenue? Do they handle consistently with the material presented in ACC 3100?

27. What was General Mills’ current ratio and working capital as of 5/28/2017? Show calculations.

28. Is the Statement of Changes in Stockholder’s Equity (Consolidated Statements of Total Equity, and Redeemable Interest) consistent with what we learned in class? Explain-indicate similarities and differences.

29. According to the MD&A (begins on p. 15) did General Mills’ Selling, general, and
administration expenses increase or decrease in fiscal year ended 5/28/2017? What was
the primary reason for the change?

30. In two detailed paragraphs, indicate a couple of interesting items you learned while
reading this annual report.

You are an in-house staff accountant at Ocean Petroleum, Inc.(OPI), a publicly traded company with a calendar year-end. OPI hasrecently expanded its land-based operations to include constructingand operating offshore oil platforms. OPI’s first offshore platformbegan operating off the coast of Alaska on January 1, 2017. Thetotal capitalized cost of constructing the platform was$100,000,000 and the deep water drilling rig will be depreciatedusing straight-line over its useful life of 10 years. As a resultof legislation following the 2010 BP oil spill, OPI is required todismantle and remove the platform at the end of its useful life.OPI currently estimates that it will cost approximately $2,158,932to dismantle the platform in ten years. OPI’s current cost ofcapital is 8%.

Walt Grimwald, OPI’s Chief Financial Officer (CFO), hasextensive experience in retail auto dealerships but is new to theoil and gas industry. He is very familiar with car warranties but,as he told you in your meeting with him today, he is “unsure how tohandle this warranty to dismantle the drilling rig.” He hasrequested you analyze whether OPI must account for this expectedfuture cost in 2017 or at the end of 2026 when the platform will bedismantled.

Grimwald has also expressed concern over making futureestimates, especially labor. Even though these estimates arereasonable enough for accounting purposes, it has been Grimwald’sexperience with auto warranties that estimates are just that –estimates. He would prefer not to book any additionalexpenses in 2017 because OPI is just barely expected to meet WallStreet’s earnings forecast. Therefore, he would like to wait until2026 or some other future year and obtain a more accurate cost ofdismantling and removing the platform. Grimwald strongly believesthat this will result in more reliable financial statements.

Grimwald would like you to write a “short memo” explaining youranalysis of the issue he has presented to you. Grimwald isdata-driven. He likes spreadsheets and is especially fond ofjournal entries. Therefore, you will need to support your advicewith a schedule - for Accounting 351 only; the schedule canbe excluded in your subsequent 351COM submission. Grimwaldalso likes his staff accountants to communicate their criticalanalysis of such financial accounting problems, so be sure to offeran analysis in which relevant FASB ASC standards are applied tofacts to support your analysis..

Learning Objectives

· Research, analyze, interpret, and apply the relevant FASB ASCstandards to a set of facts to offer supportable conclusions andrecommendations.

· Effectively communicate analysis in a clear, concise,well-organized internal memorandum (“memo”) containing propercitation.

Writing Task: Memo to be submitted inboth ACCT351 and ACCT 351COM

Based on your research and analysis, prepare a one-page memo inyour role as an Staff Accountant to Walt Grimwald, CFO, as he hasrequested. Along with the appropriate in-text citations, pleaselist your references on a separate page attached to your memo (Page2).

Your memo should offer your analysis supporting your conclusionsand recommendation that Grimwald has requested (see above). Pleaseremember to prepare a schedule for submission in Accounting 351only. The memo, plus reference page, is to be submitted in bothAccounting 351 and 351COM.

Format and Submission

Your memo must follow the CSUN Memo Format, available inAppendix B of the 351COM Student Manual available on the 351COMcourse Moodle page. Based on the facts given above, the headingshould include the name and title of the recipient, your name andtitle, the date (memo’s due date) and a subject that uses key wordsto accurately phrase the topic of your memo with sufficientspecificity and conciseness.

As noted above, please list your references on a separate page(Page 2) attached to your memo.

For 351COM, please submit your memo both to the Case MemoTurnitin link on the 351COM course Moodle page, and in hard (paper)copy in class in ACCT 351COM on Monday, April 17at 7 p.m. with the 351COM Case Assignment Rubric attached.

In submitting your memo in ACCT 351 on the date set by your ACCT351 professor, please follow any additional requirements set forthby your ACCT 351 professor.

Can you help me with the schedule and journal entries? (Ialready provided the case)

I am working on Ocean Petroleum case memo, and need help withthat. I need to support my advice with a schedule and journalentries. Can you help me to write a schedule and jo

You are an in-house staffaccountant at Ocean Petroleum, Inc. (OPI), a publicly tradedcompany with a calendar year-end. OPI has recently expanded itsland-based operations to include constructing and operatingoffshore oil platforms. OPI’s first offshore platform beganoperating off the coast of Alaska on January 1, 2017. The totalcapitalized cost of constructing the platform was $100,000,000 andthe deep water drilling rig will be depreciated using straight-lineover its useful life of 10 years. As a result of legislationfollowing the 2010 BP oil spill, OPI is required to dismantle andremove the platform at the end of its useful life. OPI currentlyestimates that it will cost approximately $2,158,932 to dismantlethe platform in ten years. OPI’s current cost of capital is 8%.

In submitting your memo in ACCT 351 onthe date set by your ACCT 351 professor, please follow anyadditional requirements set forth by your ACCT 351 professor.

urnal entries of that case ?

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