ACC 690 Final al correct

ACC 690: Final Project Guidelines and Grading Guide:
Consolidation Model
Overview
The final project for this course is the creation of an Excel spreadsheet model that shows the consolidation worksheet, intercom pany elimination entries, other consolidation entries, and the final income statement and balance sheet for a sample parent and subsidiary company. The project is divided into three milestones, which will be submitted at various points throughout the course
to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Five, Eight, and Ten.

Guidelines
The Model Assignment:
• Students will be given the description of a parent company and a subsidiary company along with the two firms’ trial bal ances at book value as of December 31, 2012, the end of the year for both firms. (See Company Information below.)
• The financial data will be presented in English pounds as local currency.
• Other data pertaining to the consolidation is also to be provided.
• The student will analyze the data for purpose of consolidation.
• The student will create a useful Excel model that shows the consolidation worksheet, intercompany elimination entries, oth er consolidation entries, and the final income statement and balance sheet.
• Using the consolidated financial statements created, students will then use Excel modeling to translate the consolidated in come statement and balance sheet from the English pounds to U.S. dollars based on exchange rates provided. (The U.S. dollar is the functional currency.)
Requirements:
• This project should be prepared as a report for your supervisor.
• The report should be visually pleasing.
• As many computations as possible should be done by the model with the exception of entering the original financial state ment data.
• The report should utilize “macros” and other built-in features found in Excel.

Milestones

Milestone One: Initial Model
In task 5-1, you will submit the initial Excel model for the report that shows the consolidation entries and the final income statement and balance sheet. This milestone will be graded using the Final Project Milestone One Rubric.
Milestone Two: Model and Exchange Rates
In task 8-2, you will translate the consolidated income statement and balance sheet from English pounds to U.S. dollars. This milestone will be graded using the Final Project Milestone Two Rubric.
Milestone 3: Final Report
In task 10-4, you will submit the final report as an attractive, polished artifact that includes all the main elements of the final product. The report should reflect the incorporation of feedback gained throughout the course. This milestone will be graded using the Final Report Rubric (below).

Company Information
Below you will find the trial balance for Parent Company and its wholly owned purchase, Subsidiary Company, as of December 31, 2012. The financial statements are denominated in British pounds.

Company
Accounts
Cash
Accounts Receivable
Inventory
Short-Term Investments
Prepaid Assets
Investment in Subsidiary
Long-Term Notes
Receivable
Debt Service Fund
Depreciable Assets
Accumulated Depreciation
Intangible Assets
Current Liabilities
Long-Term Notes Payable
Common Stock
Retained Earnings
Sales Revenue
Cost of Goods Sold
Selling Expenses
Administrative Expenses
Interest Expense

Compan
Parent y
Debit
Credit
£10,000
25,000
30,000
40,000
35,000
290,000
150,000
50,000
900,000

Subsidiary
Debit
£4,000
10,000
12,000
6,000
12,000

£50,000
20,000

92,000
225,000
400,000
482,000
750,000

44,000
119,000
200,000
50,000
245,000
160,000
45,000
70,000
5,000

1. Subsidiary Company’s assets and liabilities are all shown at fair value except for:
a. The fair value of Inventory is 32,000.
b. The fair value of Depreciable Assets is 370,000. item that is in Parent Company’s inventory for
10,000 and cost Subsidiary Company 5,000. The sale was made to Parent Company on credit, and no payment has been made.

350,000

45,000

Other Important Information:

2. Subsidiary company sold Parent Company an

14,000

£200,000

330,000
100,000
120,000
24,000

Compan
y
Credit

3. On December 27, 2012, Parent Company made a long-term loan to Subsidiary Company in the
amount of 100,000.

4. Subsidiary Company paid Parent Company 7,000 for Consulting Services. Subsidiary Com pany considers this an Administrative Expense, and Parent Company considers it Sales Revenue.
5. Exchange rates are:
March 31, 2012 Exchange Rate 1 £ = $1.24
Average Rate for 2012
1 £ = $1.22
December 31, 2012 Exchange Rate
1£=
$1.20

Final Report Rubric
Requirements of submission: The project must be in Excel format, using as many calculations in Excel as possible.
Critical Elements
Analysis of Data

Distinguished
Well-developed, accurate, and effective analysis of the data for purpose and consolidation (32-35)

Proficient Accurate and effective analysis of the data for purpose and consolidation
Emerging Accurate analysis of the data for purpose and consolidation

(28-31)

(25-27)

Accuracy of Model

The report includes useful, clear models with no errors or omissions (32-35)

The report includes models with several errors or omissions
(25-27)

Effective Use of Excel (Macros, Formulas)

All items that can be computed are computed with Excel
(14-15)
Design and layout are professional, visually striking, clear, and uncluttered (14-15)

The report includes useful, clear models with a few minor errors or omissions (28-31)
Most items that can be computed are computed with Excel (12-13)
Design and layout are generally professional and visually appealing (12-13)

Report Design and Layout

Some items that can be computed are computed with Excel
(11)
Design and layout are somewhat professional and visually acceptable

Not Evident
The report does not include an accurate analysis of the data for purpose and consolidation
(0-24)
The report contains multiple serious errors or omissions (0-24)
Few items that can be computed are computed with Excel (0-10)
Design and layout are unprofessional

35

15

15

(0-10)
Earned Total

Comments:

Value 35

100%