Your Role: You are a regional manager for Urban Outfitters. You have recently br

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Jul 28, 2022

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Your Role:
You are a regional manager for Urban Outfitters. You have recently brought a new district manager on board and want to ensure he has the knowledge and tools needed to effectively do his job. You have a new district manager hire, John, and see the need to do some training with him so he has a solid understanding of income statements, balance sheets, and the elements that go into them including advertising costs, Web development costs, and store opening costs.
In preparing to train your new hire, you have determined that the use of examples (a picture is worth a thousand words) can be a great approach to use. So, you have decided to gather some examples from the company’s summary of significant accounting policies from its latest financial statements.
Requirements:
The organization you work for is Urban Outfitters. Use the U.S. Securities and Exchange Commission site to find the Urban Outfitter’s 2016–2017 financial statement’s summary of significant accounting policies. Look at the data for 2015, 2016, and 2017 for the following examples of essential elements you need to cover with John and ensure his understanding.
• Advertising. Examine the criteria used to expense and capitalize advertising costs and where these costs appear in the financial statement.
• Store opening costs. Examine how store opening and organization costs were handled and where these costs appear in the financial statement.
• Website development costs. Examine the approaches taken during the application and infrastructure development stage and the planning and operating stage.
Training Materials:
As you prepare your training materials for John, use the examples you collected from the company’s Notes to financial documents to illustrate how you address the following items:
Explain how one or more of the following costs are captured:
Advertising.
Store opening. If store opening costs were capitalized, over what time period would you amortize them? Explain why you selected this time period.
Website development.
Analyze the importance of Notes to financial statements in interpreting financial statements.
Explain how the accounting method the company uses affects the financial statements.
Explain how the financial statements would differ if another method were used to capture the costs.
If you have a preference for capitalizing or expensing these costs, explain why it is your preference.
Deliverable Format:
Training materials requirements:
12 SLIDES. Include additional details as slide notes.
Related company standards for format:
Title (slide or page).
References (slide or page).
Appendix with supporting materials. If you are using a firm or scenario of your choosing, ensure your instructor has sufficient information to understand how you reached your recommendation.
At least two APA-formatted references.

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