The final project for this course is the creation of an Excel spreadsheet model that shows the consolidation worksheet, intercompany 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 inModules Five, Eight, and Ten.
The Model Assignment:
Students will be given the description of a parent company and a subsidiary company along with the two firms’ trial balances 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, other 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 income 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.)
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 statement data.
The report should utilize “macros” and other built-in features found in Excel.
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).