Prepare an executive summary; finalize your term paper including executive summary and the finalized version of the term paper components.

Use the Term Paper Template which includes (in APA format): a cover page, table of contents, an executive summary, introduction, review of the literature, analysis and recommendations, summary and conclusion, appendix (if you want to include items in an appendix) and references. Appropriate headings should be used to designate the various sections of the paper. The paper should be in the range of a minimum of 15 pages, double-spaced, and 10-12 point fonts. The page count is of the content and, thus does not include the cover page, table of contents, appendix or exhibits, or references.

I am attaching the template and the paper that I wrote. I just need help transferring my paper on to the template. Also, I need you to prepare an executive summary as well as add more information in the conclusion section. If there is anything else that you think need to be added, feel free to do so.

ACCT601 - ACCOUNTING CAPSTONE TERM PAPER TEMPLATE Get familiar with this Term Paper Template. The items in red are some recommendations of the things that should be covered in each section of the template. Do not include the red explanations - remove them before you complete your Term Paper. [Type the document title] [Type the document subtitle] Author name [Pick the date] Include who you prepared the paper for, who prepared the paper, and date submitted. [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] ACCT601 - ACCOUNTING CAPSTONE TERM PAPER TEMPLATE Table of Contents I. Executive Summary..................................................................................................................................1 II. Introduction..............................................................................................................................................1 III. Review of Literature.................................................................................................................................1 IV. Analysis.....................................................................................................................................................1 V. Recommendations...................................................................................................................................1 VI. Summary and Conclusions.......................................................................................................................1 VII. Appendix x................................................................................................................................................1 VIII. References................................................................................................................................................1 List the main ideas and section of your paper and the pages in which they are located. The illustrations should be included separately. Make sure that you have page numbers in your paper and list the page number(s) in the table of contents for the page where the appropriate section starts. Helpful Notes: Prepare an outline of your paper before you go forward. The outline is due at the end of Week 5 - which is also the first draft of your paper. Complete a first draft and then go back to edit, evaluate, and make any changes required. You can use example like graphs, diagrams, photographs, flowcharts, maps, drawings, etc. to help clarify and support the written part of your report. ACCT601 - ACCOUNTING CAPSTONE TERM PAPER TEMPLATE I. Executive Summary Use a header titled with the name of your project. Explain what you found, how you researched your topic, and what you recommend. II. Introduction Problem statement and how the topic fits with the course, the degree, and your focus area. Include a reason for the audience to read the paper. Include an overview of what you are going to cover in your paper and the importance of the material. Preview the main ideas and the order in which they will be covered. Establish a tone of the document. III. Review of Literature References and sources used should be from academic journals and professional publications and should be current within the past 18-24 months. IV. Analysis State the main ideas, state major points in each idea, provide evidence. Show some type of division like separate sections that are labeled; separate group of paragraphs. You would include information you found during your research and investigation. Generally your analysis will depend on what your intent is in your problem statement. You need to analyze your findings in comparison to what you said that you wanted to study (in your problem statement). You can discuss such things as: how do the findings relate to your problem statement? How do your findings compare and contrast with each other or with your problem statement or with an aspect of the profession? V. Recommendations What do you recommend? The recommendation can be for a particular company, the profession or the public. VI. Summary and Conclusions Summarize your work and your findings. The conclusion should include a recommendation .Summarizing Page 1 of 4 ACCT601 - ACCOUNTING CAPSTONE TERM PAPER TEMPLATE is similar to paraphrasing but presents the gist of the material in fewer words than the original. Identify the main ideas and major support points from the body of your report. Minor details are left out. Summarize the benefits of the ideas and how they affect the profession, company, or public. VII. Appendix x You can include an appendix or exhibits if you would like to (this is optional). VIII. References References are very important. At least five-to-eight references are required for the term paper. Anonymous authors or web pages are not acceptable. At least three of those sources used should be from academic journals or professional publications and should be current within the past 18 to 24 months from the Keller library. All references should be cited within the body of your work and listed on the last page of your term paper in a section titled "References." Page 2 of 4 Changes in Accounting Principles 1 Introduction Management decisions play a key role in how financial information is reported for a company. One such management decision involves choosing between different accounting principles when necessary. Accounting principles are universal guidelines that are followed for recording and reporting financial events. There are times when it is necessary to change or reverse a previous management decision regarding a particular accounting principle, resulting in a required accounting change. There are various instances in which a change in accounting principle may be necessary. Sometimes there are multiple principles that can be applied to a particular situation, and a change is made to switch to a different principle. Sometimes the principle being used is no longer accepted. This paper will outline the types of changes, along Changes in Accounting Principles with reasoning and methods behind these changes in accounting principles, and the types of 2 effects these changes can have on financial information. Review of Literature An "accounting principle" is a general rule to take after when recording and reporting money related exchanges. There is a "change in accounting principle" when: 1. There are two or all the more sound "accounting principle" that applies to a specific circumstance, and you move to the next guideline, when the "accounting principle" rules that previous connected to the circumstance is no more by and large acknowledged, you change the strategy for applying the rule. 2. There are a few classifications of unpredictable things that may show up specifically in the organization's money related explanations or as references to them. At the point when an organization receives an alternate "accounting principle" strategy, the decision can have a material impact on the company money related position. Thus, former money related proclamations need to mirror this change. This permits examiners, financial specialists, and loan bosses to make precise correlations when assessing the authentic execution of a company. (Accountingtools.com) Previously accepted accounting principles are sometimes revised or clarified through pronouncements by the FASB. These changes might be made due to improved comparability in reporting, or because of the impending work between IFRS and FASB on convergence between the two. When these pronouncements are made, they usually include details as to when the changes should be made effective, and how entities should make these changes. GAAP states that in an instance where other provisions are not provided in an individual pronouncement Changes in Accounting Principles requiring a change, the entities are to refer back to the FAS 154, the general guidelines for 3 accounting changes and error corrections (FASB FAS 154, 2005). In most cases, detailed provisions are provided for a specific required change within the pronouncement. A recent example of such a pronouncement can be found in the FASB Accounting Standards Update Topic 606, Revenue from Contracts and Customers. The revision was released in May 2014. This revision was part of a joint venture between FASB and IFRS to clarify and simplify standards for reporting revenue from contracts (FASB Topic 606, 2014). Included in the revision are provisions stating the effective dates for both public and non-public entities. The revision also indicates how the required changes are to be made. The revision provides two options for retrospective application to report any changes in revenue due to these updated standards (FASB Topic 606, 2014). In this case, entities should follow the instruction within Topic 606, and not necessarily refer to FAS 154 since specific provisions are provided. Analysis There are two ways in which an accounting change can be disclosed. The first, and preferred method, is known as a retrospective application. A retrospective change requires all previous financial reports to be altered, so that it appears that the new method had always previously been used. Adjusted balances for the current reporting period are used in order to accurately report the change. According to FAS 154, this type of change is required, unless doing so would be impractical. Retrospective application includes three things according to the FAS 154 report. First, the cumulative effect of the change will be reflected in the asset and liability accounts at the beginning of the first presented period. Second, any offsetting adjustments to retained earnings should be made during that period as well. Finally, all financial statements for Changes in Accounting Principles each reporting period should be altered to reflect the change (FASB FAS 154, 2005). When 4 practical, this type or retrospective application should be used for all reported accounting changes. When a retrospective application is not feasible, a prospective application is used. FAS 154 provide criteria to be used in determining impracticality. First, every reasonable effort must be made to apply the requirement. Second, it must be found that the intent of a managerial decision in a prior period cannot be determined. Third, it must be concluded that estimates that are required for the application cannot be determined because the information is not available (FASB FAS 154, 2005). If all of the requirements for impracticality are met, it is permissible to apply the change prospectively. Adjustments to the current period financial reports will be adjusted for the estimated effect of the change. One such accounting change that is likely to occur involves long-term investments. When accounting for long-term investments, there are two types of methods used to determine the value of the stock shares, the cost method and the equity method. Under the cost method, the investment is recorded at the historical cost as a non-current asset (FASB ASC 325, n.d.). If the equity method is used, the beginning historical cost is adjusted proportionately for the investee's profit or loss, causing an increase or decrease in the value of the asset for the investor. According to GAAP, the equity method must be used if the investee has purchased 20% or more of the voting stock of the investee. There is an exception to this rule only if the investor can show evidence that they are unable to exercise significant influence over the investee (FASB ASC 323, n.d). This may occur, for example, if the investee refuses to give control to the investor. This type of situation must be documented by the investee. If the level of ownership falls below the 20% required for significant influence, the entity will be required under GAAP to stop accruing its Changes in Accounting Principles part of the earnings and losses. If the level of ownership rises above the 20% requirement, the 5 entity is required to begin using the equity method to account for the value of its investment (FASB ASC 325, n.d.). Significant influence can be affected by either the investor buying or selling a portion of its voting stock, or by the investee issuing additional shares. In both cases, the change in accounting principle will need to be accounted for. In a contracting business such as the construction industry, there are two acceptable methods for recording long-term contracts. It may become necessary for a company to switch methods, causing an accounting change. The completed contract method recognizes revenue only when the contract is completed. A long-term contract is defined by the IRS as one that is not completed within the same year it began. Using this method, revenue is deferred until the contract is complete, while overhead is immediately expensed. The other method that can be used is called the percentage of completion method. This method records revenue by the percentage of the project that is completed. The project is billed periodically according to this ratio, and revenue is recorded as it is billed. Using this method, expenses should more closely match with revenues. Any over/under billings are recorded to either a liability or an asset account, and are reconciled at project completion. Switching from the completed contract to the percentage of completion method will cause changes in yearly net income from the previously deferred revenues. While this change should be recorded retrospectively to prior years, complete information may not be available to properly record these changes. The company is still required to adjust net income for the current period in which the change is made. There are two ways changes in accounting principles can effect financial reporting. A direct effect is recognized when a change in an asset or liability is required in order to implement the change. For example, if a change is made in the method used to value inventory, the direct Changes in Accounting Principles effect would be the difference in the recorded cost of the inventory. Under GAAP, all direct 6 effects must be accounted for retrospectively, unless impracticality is declared (FASB FAS 154, 2005). The entity would be required to retrospectively change the financial reports to reflect this new inventory balance, as if the method had always been used. The first set of financial reports will include a balance that reflects this change. Also, an increase or decrease in income tax liability would be considered a direct effect, as well as any change in deferred tax assets or liabilities. Any change that occurs in current or future cash flows from these accounting changes is known as indirect effects. Under GAAP, indirect effects are not required to be reported retrospectively. These types of changes are only reported within the period that the accounting change took place (FASB FAS 154, 2005). An employee profit sharing plan that is based on revenue would be an example of an indirect effect. These indirect effects would be required to be included in a disclosure note in the financial reports for the period in which the change took place. One of the most common accounting changes to take place is a change in the way inventory cost is recorded. Two of the most popular costing methods are the last in first out (LIFO) and the first in last out (FIFO) methods. Other methods include the average cost, specific identification, and retail methods of costing. Of the methods, LIFO is the most controversial. Due to tax advantages under the LIFO method, the IRS conformity rule states that if the LIFO method is used for tax purposes, it must also be used for financial reporting (JournalofAccountancy.com). This prevents companies from using the LIFO method to reduce taxes payable while using a different method to increase net income on financial reports. The LIFO method is not accepted under IFRS international reporting standards. This is one of the Changes in Accounting Principles greatest differences between GAAP and IFRS. With the possibility of convergence between IFRS 7 and GAAP in the future, many companies will eventually be required to find an alternative method to LIFO. More companies continue to switch from the LIFO method as action towards IFRS and GAAP convergence continues. This action will cause entities to retrospectively report accounting changes for the change in principle. Recommendations Accounting changes should only occur on rare occasions, where the company can justify the change with facts showing that the change is preferable. Under FAS 154, disclosure of the effects of the change on net income and relatable amounts is required. An example of such a disclosure can be found regarding the corporation AEGON when announcing a change in accounting principles to a fair value approach in 2007. The report states, \"This change will ensure AEGON's financial statements better reflect the economic matching of its assets and liabilities\" (AEGON, 2007). The report goes on to justify the change by claiming to increase the transparency of their financial results for investors and analysts (AEGON, 2007). Transparency and comparability are two important focus factors behind many accounting principles. A change can usually be justified as preferable if the change will increase the transparency and/or comparability of an entity's financial reports. Changes should not be made merely at the will of the company, or in order to unfairly alter financial information. Summary and Conclusions As stated previously, changes in accounting principles should only happen under certain circumstances when the change can be validated. Accounting regulations such as GAAP provide detailed guidelines on when and how these transactions are to be handled. These types of changes can have a great income on financial reports, and the requirements to adjust for the Changes in Accounting Principles change can be cumbersome. Before making decisions regarding accounting principles, 8 management should be well informed on the impact the different principles will have on financial information, and make educated decisions as to which principles and interpretations should be used for a particular entity. References Accountingtools.com. (n.d.). Changes in Accounting Principle. Retrieved September 23, 2015 from www.accountingtools.com: http://www.accountingtools.com/change-in-accountingprinciple AEGON N.V. - change in accounting principles. (2007). PR Newswire Europe Including UK Disclose, Retrieved September 8, 2015 from http://www.prnewswire.comewsreleases/aegon-changes-accounting-principles-relating-to-guarantees-in-the-netherlands52762077.html FASB (Financial Accounting Standards Board). (n.d.). ASC 323: Investments- equity method and joint ventures. Retrieved September 7, 2015 from FASB database. FASB (Financial Accounting Standards Board). (n.d.). ASC 325: Investments- other. Retrieved ses measured by generally accepted accounting principles (GAAP) in the economic resources underlying the investments. Furthermore, the equity method of accounting more closely meets the objectives of accrual accounting than does the cost method because the in vestor recognizes its share of the earnings and losses of the investee in the perio ds in which they are reflected in the accounts of the in vestee. September 7, 2015 from FASB database. Changes in Accounting Principles FASB (Financial Accounting Standards Board). (2005). FAS 154: Accounting changes and error 9 corrections. Retrieved September 7, 2015 from FASB database. FASB (Financial Accounting Standards Board). Topic 606: Revenue from contracts with customers. Retrieved September 7, 2015 from FASB database. Journalofaccountancy.com. (n.d.). changesinaccountingforchanges. Retrieved September 28, 2015 from http://www.journalofaccountancy.com/issues/2007/feb/changesinaccountingforchanges.ht ml