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This is the third of three milestone assignments that will lead to completion of your course project. In this assignment, you will complete Critical Element IV: Adjusting Entries and Critical Element VI: Communication. This milestone addresses the following course outcomes: 
A. Differentiate between the Generally Accepted Accounting Principles and the International Financial Reporting Standards for their impact on financial statements. 
B. Determine appropriate accounting treatments of business transactions, including adjusting entries, for their impact on the results of financial statements. 
Continue to work with the company you chose to use in building your portfolio. 
Specifically, the following critical elements must be addressed: 
IV. Adjusting Entries: For this part of the assessment, you will continue your financial analysis paper. 
     A. Explain the type of depreciation method your company uses and why they use this method. 
     B. Identify an example of an adjusting entry (other than depreciation), such as prepaid expenses, supplies, or unearned revenue, and whether or not your company has this account listed on the balance sheet. You could consider why this might not be listed. 
VI. Communication: For this part of the assessment, you will prepare memorandums to upper management addressing certain scenarios or situations. 
    A. As the controller of your chosen company, compose a memo to the CEO addressing the advantages and disadvantages of transitioning from GAAP to IFRS. 
    B. As the controller of your chosen company, compose a memo to the CEO addressing the following scenario: Your biggest customer has just gone bankrupt, and you must inform the CEO how this will affect your accounts receivable. Assume that the accounts receivable balance is at least $100,000. 
Guidelines for Submission: Prepare your paper using Microsoft Word. It must be 2 to 3 pages in length, not including the cover page and reference page. Put each memo on a separate page. Follow APA formatting guidelines using appropriate headings, double spacing, 12-point Times New Roman font, and one-inch margins. Support your arguments with at least three peer-reviewed sources cited in APA format.  

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