This is only for the outline
Submit an outline and questions for your Portfolio Project in a Word document with separate cover and references pages. Include the following:
Franz, D. R. (2018). “Back to the future” (or how a product last sold almost 60 years ago resulted in a current financial statement restatement) https://eds-p-ebscohost-com.csuglobal.idm.oclc.org/eds/detail/detail?vid=0&sid=af7fbb38-200c-4743-9997-94fabb7056f6%40redis&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=bth&AN=129502948 Issues in Accounting Education, 33(2), 9–17.
- Provide an outline of your paper. (See below for paper information)
- Your outline should include headers (the major topics), major resources, and the intended flow of the information in the project for the written portion of the Portfolio Project requirements for option 1.
- Under each header, write a few sentences on what you think you might cover in that section.
- Provide citations for three articles that you might consider using as references for your final Portfolio Project. These sources cannot include the required or recommended reading materials for this module. Format your citations or references in APA style.
- Give a short reason why you feel each source would be pertinent to your project. This is not expected to be a final list. The goal here is to motivate you to begin examining research that might help you in your final Portfolio Project.
- Provide your instructor with a list of questions you have at this point regarding your option choice. You MUST have at least one question. You potentially should have multiple questions by now, especially after thinking about how you are going to go about meeting the requirements of your Portfolio Project
The outline will be for the following project
In preparing your answers for questions 1 to 4, you will need to refer to OI’s amended 10-K for 2015, which can be found by clicking hereLinks to an external site..
- What journal entry would OI have made to record the additional $295 million of asbestos liability?
- Briefly summarize the effect of the restatement on the following financial statements.
- The income statement.
- The balance sheet.
- The statement of cash flows.
- The statement of share owners’ equity.
What accounts were affected? By how much? What other disclosures were impacted? Note 1 in the restated 2015 10-K describes the changes.
- Explain why OI’s treatment resulted in an increase to the earnings for 2015, 2014, and 2013.
- Based on OI’s disclosures in the 10-K prior to restatement, was it clear that the firm was using a three-year period to estimate asbestos litigation? Be sure to explain your response.
- The discussion between the SEC and OI was extensive and interesting. Appendix A shows all of the correspondence between the two and includes web links to the letters. The following questions are based on those letters and the information in the case.
- Briefly summarize OI’s justification of its treatment of the unasserted asbestos liability. What are the pros and cons of OI’s original treatment of the asbestos liability?
- Briefly summarize the SEC’s position regarding the treatment of the unasserted asbestos liability. What are the pros and cons of the SEC’s approach?
- Which approach do you find preferable and why? You can choose either OI or the SEC, but your analysis needs to be based on something other than the fact that the SEC prevailed or OI did not.
- How is OI’s experience with asbestos litigation similar to Garlock’s? How is it different?
- Approaching this issue as a member of OI’s executive management group, describe how your approach to asbestos litigation would be similar to or different from OI’s.