Upload Assignment: Assessment 12.1 (ST.3.5.6 .8) ? ...

1. I need you to make an analysis of an article following the following guidelines:
   • 1)Summary: what is a main concept in the case or article? (Title:.Free Cash Flow (Fcf), Economic Value Added (Eva), And Net Present Value (Npv): A Reconciliation Of Variations Of Discounted-Cash-Flow (Dcf) Valuation).
   • 2)Situations that arise in the case or article.
   • 3)Possible solutions to such situations (applying the lesson of the day).
   • 4)Select one possible solution to the case. Explanation for how you select this solution (the best alternative is not always feasible to resolve the central or primary situation presented in the case or article).
   • 5)Reflexive analysis on developments in the case or article. You can use other references that approach the situation raised in this case or article from other perspectives.
   • 6)Conclusion or recommendation.

Polytechnic University of Puerto Rico Graduate School (MEM) MGM 6620 Managerial Finances XBRL Financial Statements 12/3/2016 Assessment 3.1 Ing. Carlos Santiago #50531 Ing. Ernesto Rosado #103535 Ing. Joel Ruz #59499 Ing. Ruddy Risueo #75201 Prof. Ingeniero Enrique Muoz, Ph.D.(c) Group D: Assessment 3.1 Assessment 3.1: Article Change Report: What's your XBRL readiness? 1. Summary: what is a main concept in the case or article? The article talks about the transition that will take place in large public companies. Companies will have to adopt XBRL (eXtensible Business Reporting Language) internet based technology standard for formatting financial statements they submit to the SEC (Securities and Exchange Commission). In late 2008, there would be a new rule applied by the Securities and Exchange Commission that require US public companies to convert their financial statements to extensible business reporting language format (XBRL). XBRL is a new mandatory format for financial reporting. Developing a sustainable, well integrated process for XBRL filling is seen as a challenge by many organizations. 2. Which are some situations that arise in the case or article? As previously mentioned, companies will have to adopt XBRL internet based technology standard for formatting financial statements. Yet, many companies haven't begun preparing in a meaningful way, according to a survey. XBRL is coming, whether they like it or not as this is a mandatory conversion that was approved by the SEC. Some companies worry about the increased visibility. One even stated that XBRL will add to the effort that his company must regularly expend to correct analysts' misunderstanding of the organization's financial data. Some companies were not even aware of the existence of XBRL and some others considered themselves beginners in the system. Companies feel that the conversion to an integrated XBRL system is challenging due to the factors that require to be reformed in order to comply with the new rule. 3. Possible solutions to such situations (applying the lesson of the day). Education. Since this is a mandatory change, all the companies should acquire the knowledge necessary to understand what is XBRL and how it can be beneficial to themselves. Most financial information was filled with the SEC using HTML or ASCII formats, by converting to a standard system it would be easier to compare data between companies, apply filters, and analyze each piece of data with a standardized system. Taking the initiative. It is important that companies take the initiative and start moving toward the conversion from the older system to the new standard one. Companies should identify the individuals who can manage the XBRL preparation. They should include in the team: a corporate reporting representative, an accountant with external reporting knowledge, and a technologist with experience in extensible markup language (XML). Adopt the system. The team should now develop the process to comply with the quality standards required by the XBRL format. XRBL fillings should be integrated with the company's current financial reporting processes. Companies should also decide if they are preparing the XBRLs internally or if they would contract an outside firm to do this work. Whether XBRL documents are prepared internally or outsourced, managers remain responsible for the accuracy of their company's financial data. 1|Page Group D: Assessment 3.1 4. Select one possible solution to the case. Explanation for how you select this solution (the best alternative is not always feasible to resolve the central or primary situation presented in the case or article). We think that companies should embrace the change and be proactive to the new standards being placed in the company due to new guidelines offered by the SFC. A solution is to understand the XBRL's potential impact to the organization's finance reporting process, is to start moving into XBRL preparation process. Outsourcing is a good option if the company becomes hesitant to tackle XBRL. Personnel must understand that the business must embrace the concept as a matter of necessity; they may want to step back and look at XBRL in the context of data standards and the optimization of their own reporting system and processes. When planning for implementation, the company must provide adequate time for training, process development, and quality assurance checks. The organization needs to analyze how to incorporate the new assignment imposed by the regulatory agency. Management should not underestimate the steep learning curve that comes with any new technology; executives of businesses that file with the SEC would be well-advised to begin educating themselves and to start planning their new reporting process immediately. Adopting XBRL will require the same discipline from companies as that which surrounds their current financial reporting process. We've selected this solution since it's very important that when a change in a company is set in place, the company should provide the proper training and tool for the employees to learn and step up the learning curve. The company must be able to provide time for the new rules provided by the regulatory agencies to be incorporated in the employee's usual daily routine. 5. Reflexive analysis on developments in the case or article. You can use other references that approach the situation raised in this case or article from other perspectives. Like all transitions, change is not always seen as the best option until you see the results. There is no difference here. In the article \"What's all the fuss about XBRL?\