Accounting policies are essential for adequately understanding the information provided in financial statements. An entity as required by GAAP, should present as an integral part of the financial statement a statement identifying the accounting policies adopted and followed by the reporting entity (Kieso, Weygandt & Warfiled, 2015, p.1391). Accounting policies are the specific accounting methods an organization presently uses and considers most appropriate to present its financial statements fairly. The disclosing of accounting policies must incorporate important conclusions as to the relevance of principles concerning the recognition of revenue and allocation of asset costs to current and future periods (FASB). Identifying accounting policies …show more content…
Verizon experienced revenue growth in their Wireless business of 6.8% in 2016 compared to 2015 (Verizon, 2015, p. 7). The growth was attributed to the demand for smartphones, tablets, and other internet devices. A 3.2% increase in retail postpaid connections compared to 2012 with smartphones comprising 62% of retail postpaid phone base at December 31, 2016 compared to 50% at December 31, 2015; 2015 postpaid smartphones activations represented 75% of phones activations compared to 72% in 2015 (Verizon, 2015, p. 11). From a potential investor’s perspective, growth would indicate Verizon is a stable business, expected to continue to increase profits markedly in the future, as well as profitable reinvestment opportunities for its own retained earnings. Trends included in the MD & A cited intensity in regards to competition with traditional and non-traditional service providers pursuing increased market share. With investments in innovative technology like wireless networks, high-speed fiber and cloud services Verizon believes their company will be positioned at the center of future growth trends. Verizon’s ability to understand and identify trends that might impact their organization provides a useful starting point to meet changing market demands from its resources and seek partners who offer desirable products, advanced technology or manufacturing …show more content…
According to GAAP, an organization is required to classify any department or division engaged in operating activities from which it may produce income and incur expenditures, wherein separate financial information is available, and whose results are frequently reviewed by the entity's chief operating officer for performance assessment and resource allocation decisions. An organization must report segments if the aggregate results of two or more operating segments have similar product lines, services, processes, customers, distribution methods, and regulatory environments; has at least 10% of the revenues, 10% of the profit or loss, or 10% of the identifiable assets of the entity, or if the total revenue of the segments. After quantitative materiality tests to determine whether the segment is deemed significant and reportable, two additional factors must be considered. The segmented results must first, equal or exceeds 75% of the entity's total revenue. FASB also recommends that companies be limited to disclose ten segments. The segmented information has both its advantages and disadvantages, depending upon the use of the
Verizon Wireless cellular service is inelastic because the products and services it offers makes them the dominant leader in the wireless industry; therefore, a 10% change in calling plan prices (monthly access fees) would not affect the quantity demanded. Verizon Wireless can depend on this inelasticity in their pricing model because of the strength of its brand and the wealth of products and services it offers. Verizon Wireless' competitive advantage comes from its ultra-low churn rate (the percentage of customers who disconnect their service is less than one percent of its 60 million customer base). This indicator suggests that customers are satisfied with the service Verizon Wireless offers and a slight price increase probably would not drive its customers to the competition. This data also suggests that customers probably stay with Verizon Wireless because of its continued expansion of new technologies and services such as its all-digital nationwide CDMA network, EVDO' or its advanced data network (used to wireless send and receive email and other data almost anywhere in the US), and VoIP (Voice over Internet Protocol) that they use for their Push to Talk products. Verizon Wireless markets to a nearly all demographics nationwide and most of its services are offered in the smaller rural markets as a direct result of the one billion dollars per quarter it spends on improving its network as well as acquiring smaller wireless networks to make their nationwide network stronger and larger.
Verizon is predominantly a cellular service provider; however, they are involved in many more industries like search engines, news outlet, and emails with the acquisitions Yahoo and AOL. Thus, the supply chain Verizon utilizes involves many inputs were there are always many choices, because of the high rivalry and cost cutting demands from consumers. According to Verizon, “Verizon is a charter member of the Billion Dollar Roundtable, a coalition of corporations that spend more than $1 billion each year with diverse suppliers.” (www.verizon.com/about/our-company/supplier-diversity). The primary supplier for Verizon would be their phone providers, which include Apple, Google Android phones, Microsoft, Blackberry, etc. The
“Adverse economic and/or capital access changes in the markets...including the impact on customer demand…” (AT&T INC, 10-K, 2014: 9)
The goal of the Codification is to simplify the organization of thousands of authoritative U.S. accounting pronouncements issued by multiple standard-setters. To achieve this goal, the FASB initiated a project to integrate and topically organize all relevant accounting pronouncements issued by the U.S. standard-setters including those of the FASB, the American Institute of Certified Public Accountants (AICPA), and the Emerging Issues Task Force (EITF)
“Verizon Communications Inc., based in New York City and incorporated in Delaware, was formed on June 30, 2000, with the merger of Bell Atlantic Corp. and GTE Corp. Verizon began trading on the New York Stock Exchange (NYSE) under the VZ symbol on Monday, July 3, 2000.” Verizon Communications Inc. is a publicly held Corporation. In this paper, I will discuss the corporate roles and duties of a corporation. I will also discuss the differences between a publicly held and closed corporation.
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
The world is experiencing a communications revolution. The Internet, e-Commerce and other developments (including the convergence of communication technologies) are profoundly reshaping economic and social life. AT&T must position itself to meet the challenge of this revolution. The strategic development of information-based industries is a key to the future social and economic development of the world.
This essay will discuss the influence NZ Framework brings to financial reporting standards that included NZ GAAP based on the debate between principles-based and rule-based. In particular, it will portray: (1) the nature and orientation of financial reporting framework and GAAP; (2) the main improvement of NZ Framework and the applications framework guided in NZ GAAP.
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
In conclusion, current trends and significant events concerning T-Mobile were examined. A hard look was given to the economy, demographics, technology, political and legal issues, and social characteristics. T-Mobile is strong across the board, with surprising statistics backing up a variety of topics. The economy is strong, the demographics are not far-fetched, technology is improving, there’s no huge political or legal scandal, and T-Mobile is socially strong.
One of the most debatable topics in the accounting industry today is the extent in which we should make the financial statements understandable to the general population. The FASB currently gears its reporting standards toward...
Accounting principles are main consideration , certain standards like rules of operations are pillar characteristicis to built accounting statements. Accounting principles can be presented in many ways, sometimes its create confusion for readers mainly for beginners, but still acoounting principles are main tool to obtained financial statements. Its hold the whole acoounting process together.
The growth stage can be beneficial to successful companies which have the ability to invest more money into their business. These businesses are able to enhance their technology, build new facilities or expand into other markets that others are unable to due to lack of investing, causing them to fall out of the market completely (Parnell, 2014). Companies like Netflix and their stronger competitors can use this stage to corner the market driving out some of the smaller players. This is the time for these companies to look at what they can do to strengthen their business. Analyzing their external markets, customer buy habits, and competitors, they can move past the growth stage and into the shakeout forcing out the smaller
According to business, or any organization, Accounting plays a major role in developing and growth of the business. Financial standards of the organization expected as the complexities of business growth and expansion. Hence determining the implementation of the standards can vary according to the type of industry, business or organization.
(i) Judgement and materiality play a significant role in helping to ensure that the selection of accounting policies in presenting the financial statements for a true and fair picture of the company’s financials. This means that entities should provide the financial statements with comparability, consistency and clarity to users of these statements. Entities must follow accounting policies required by IFRS and AASB should be relevant to particular circumstance.