ACCT 401, CADW – Advanced Accounting – Spring 2023Writing Assignment
Gilead Sciences and Immunomedics Business Combination
You are a senior auditor working for Ernst & Young LLP (EY). Gilead Sciences, Inc. is your
primary audit engagement, and you were involved in the audit of its business combination with
Immunomedics, Inc. in 2020. Let’s assume a new manager at EY, John Smith, was just assigned
to the audit engagement. Assume you have already been introduced to John and are engaging in
daily communications via email. In your last meeting, John asked you to provide him with a brief
summary of the major components of the deal. In particular, John asked for the following
information:
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Closing date and type of business combination (statutory merger, statutory consolidation, or
control without dissolution – please select one of the three types we discussed in class and
explain what this means for the two entities in your own words).
Key motivations behind this combination.
Total purchase consideration (amount and type – cash, debt, stock, or other type of payment).
Related costs of business combination (amount and type) and how they were accounted for.
A table that summarizes the allocation of consideration transferred to assets acquired and
liabilities assumed (Utilize your own formatting to effectively condense this information; do
not copy and paste directly from 10-K).
The amount of goodwill recognized and the Company’s qualitative explanation for it.
1-2 sentences summarizing your findings from the Quarterly Revenue Analysis and the
implications for the overall success (if any) of the acquisition (See Assignment Part II).
A recent update on Gilead Sciences and the related acquisition (from a current news article).
YOUR ASSIGNMENT PART I:
Write an organized and concise email (1-page max) to provide the requested information to John.
Resources: Please use the following resources to get started:
News and Press Releases
• https://www.gilead.com/news-and-press/press-room/press-releases/2020/9/gilead-sciencesto-acquire-immunomedics
• You must incorporate at least one other relevant news article (details for how to cite are
provided below).
Company Filings with Reported Financial Information
• Gilead Sciences, Inc. Form 10-K filed 2021-02-25 from EDGAR Filings (Refer to Note 6
– Acquisitions).
How to Look up EDGAR Company Filings
• Go to https://www.sec.gov/
• Click on Filings
• Click on Company Filing Search
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Under Company and Person Lookup type “GILEAD SCIENCES, INC.”
Click Search
Under Filing Type input “10-K”
Click Search
Click on the Form 10-K Document referenced above
YOUR ASSIGNMENT PART II:
For the automation component, please also incorporate the following request:
John Smith also asks you to create a “Quarterly Revenue Analysis” to monitor any postacquisition trends. The report will pull data from quarterly revenue files and must be updated at
the end of each period. To save time in future periods, you decide to automate the report in
Excel. Include this report as an Excel attachment to the email from Part I. Please reference this
attachment in the narrative of your email and provide 1-2 sentences summarizing your findings
and the implications for the overall success (if any) of the acquisition.
Summary of Required Automation Tasks
1) Record Macro to Automate Creation of “Q1-Q3 Clean” Tabs: Record an Excel Macro to
clean and format the raw quarterly revenue files “Q1-Q3 Raw” tabs. For your Macro to be
successful, I should be able to re-run it on each raw quarterly revenue file and get the
formatted output shown in the “Q1-Q3 Clean” tabs in the “vFinal” excel file.
2) Use Formulas to Automate Creation of “Quarterly Revenue Analysis” Table: Use
formulas in Excel to both grab and calculate the information from your “Q1-Q3 Clean” tabs
and create the “Quarterly Revenue Analysis” table in the “Summary Table” tab. You will be
asked to incorporate the following formulas: VLOOKUP, direct linking, and simple
mathematic calculations. For your automations to be successful, I should be able to paste in
new clean data files from different dates within the “Q1-Q3 Clean” tabs and your “Summary
Table” tab should automatically repopulate. Your summary table should match to what is
shown in “vFinal” excel file.
Files Provided:
• “Writing Assignment – Automation Component – vBlank” excel file
o This is the file you will automate and turn in. Detailed instructions are included in the
first tab.
• “Writing Assignment – Automation Component – vFinal” excel file
o This file is your hardcoded model for what the final formatting and output should
look like on each of the tabs in the template.
Resources: Please use the following additional resources as a guide to automation tasks:
YouTube Tutorials
• How to Use VLOOKUP in Excel
• How to Record a Macro in Excel
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GENERAL REQUIREMENTS:
Format: For your email use 12-point font and single spacing. Your email narrative should be no
more than 1 page in length (tables or graphs may go onto the second page but should be
referenced as “attachments” in the email narrative). Double space between paragraphs, and do
not indent the first line of each paragraph. I suggest using subheadings and bullet points to
organize your email. For financial figures, you must create your own formatted summary tables
(do not copy and paste from EDGAR). Be sure to include an appropriate email “Subject” line
and appropriately address the email to John Smith based on the context of the case. Your email
should be dated as of today’s date.
Include the Following Email Header:
From: Your full name
To: John Smith
Date: Today’s date, time
Subject: Write an appropriate subject line here
Citations: At least 1 outside source is required for this assignment. This outside source must be
cited in the email. You do not need to cite the provided resources.
To cite, please use footnotes or endnotes. You can use the “insert footnote/endnote” command
from the “references tab” in Word. This should be done at the end of the sentence for which you
used the reference, with the reference cited at the bottom of the page next to the corresponding
footnote/endnote number. The font size of cited references at the bottom can be reduced to 10pt.
Please give me enough information in the citation to be able to find the article (Author, date, title
of article, source, web link). Please use strong sources that add to the information content.
Investopedia citations are discouraged.
Plagiarism: You must do your own work. I will consider it plagiarism if your wording is similar
to another student (where a student modifies his/her draft based on the work of another student).
Office Hours: I will not pre-read or pre-grade your drafts before the due date. This course is
structured so that each graded draft builds upon comments received from the prior draft. There are
multiple submissions to provide the opportunity for improvement. For each graded submission, I
provide detailed written comments to guide you in your revision.
If you have specific questions on the assignment requirements or my written comments, we can
discuss these questions together in office hours. Please come to office hours prepared with your
questions in advance.
Please keep in mind, I will not answer questions related to whether or not your researched facts
about the case are “correct” or “incorrect” as this would not be fair to the other students. It is your
job to apply the content learned in class to the real-world setting and make appropriate
interpretations.
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Advanced Writing Student Learning Outcomes:
Contexts and Purposes
Students will:
• write with the mastery of a student advanced in an area of study by distinguishing and
responding to audiences, occasions, and discursive contexts
Content, Sources, and Evidence
Students will:
• use relevant and persuasive content based on mastery of the subjects and conventions
appropriate to the area of study
• use credible sources to develop ideas and arguments that are effective within the area of
study
• cite sources accurately according to the style of the area of study
Mechanics
Students will:
• make effective use of process writing, including pre-writing, revision, and editing
• write clearly and fluently in formats relevant to the area of study, with few errors in syntax
and grammar.
Technology in the Accountancy Profession Learning Outcomes:
Utilizing and Leveraging Technology
Students will:
• develop and implement simple automation strategies for repetitive accounting tasks.
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Grading Rubric:
Each draft will follow the rubric below (50pts per draft / 100pts total per assignment)
Points
Meets or Exceeds
Approaches Expectations
Below Expectations
Possible: 50
Expectations
Contexts and
10
8
6
Purposes
Response carefully takes into Response generally takes into
Response rarely takes into
consideration the specific
consideration the specific
consideration the specific
audience and context outlined audience and context outlined
audience and context outlined
10
in the case. There is
in the case. There is somewhat in the case. There is mostly
appropriate and consistent
inappropriate or inconsistent
inappropriate or inconsistent
tone, formatting, and length
tone, formatting, and length
tone, formatting, and length
for the type of business
for the type of business
for the type of business
communication.
communication.
communication.
Content,
20
16
12
Sources, and Content, sources, and
Content, sources, and evidence Content, sources, and
Evidence
evidence are consistently
are generally relevant, reliable, evidence are somewhat
relevant, reliable, accurate,
accurate, and persuasive.
relevant, reliable, accurate,
20
and persuasive. Student
There is some inconsistency
and persuasive. There are
addresses all items requested
and/or inaccuracy in the
many inconsistencies and/or
in the case. Citations are
information presented. Student inaccuracies in the
provided for all outside
addresses all items requested
information presented. Student
sources.
in the case. Citations are
does not address all items
provided for all outside
requested in the case.
sources.
Citations are not provided for
all outside sources.
Composition
5
3
2
& Sentence
Thoughts are well organized
Thoughts are generally
Thoughts are mostly
Structure
throughout. Good sentence
organized throughout. Some
disorganized. Many sentences
5
structure throughout.
sentences could be improved
need improvement for reading
for reading clarity.
clarity.
Grammar,
5
3
2
Spelling,
Grammar, spelling, and
There are a few errors in
There are excessive errors in
Units
punctuation provide no
grammar, spelling, and
grammar, spelling, and
5
distraction throughout. Units
punctuation. There are a few
punctuation. Units are
are correct and consistent
examples where units are
incorrect or inconsistent
throughout.
incorrect or inconsistent.
throughout.
Automation
5
3
2
Component
Student successfully
Student completes the
Student completes the
5
completes the automation
automation task, but there are
automation task, but there are
task.
a few minor issues.
many issues for which the
template does not properly
function.
Timeliness
5
0
0
5
Response is turned in on the
Response is not turned in on
Response is not turned in on
due date assigned.
the due date assigned.
the due date assigned.
5
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Formatting
Title Page
Citation
Outline
