EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Parkman Sporting Goods is preparing its annual report for its 2021 fiscal year. The company’s controller has asked for your help in determining how best to disclose information about the following items:1. A related-party transaction.2. Depreciation method.3. Allowance for uncollectible accounts.4. Composition of investments.5. Composition of long-term debt.6. Inventory costing method.7. Number of shares of common stock authorized, issued, and outstanding.8. Employee benefit plans.Required:Indicate whether the above items should be disclosed (A) in the summary of significant accounting policies note, (B) in a separate disclosure note, or (C) on the face of the balance sheet.
Please help with the question that is attached. The question is highlighted in yellow. Thank you :)
https://www.unilever-caribbean.com/files/6eae8d2b-daec-43df-9ae2-94a5db0afac2/nlatam-pdf-unilever-financial-statements-2022-final-full-summary.pdf
Financial Reporting Analysis: Use the link above to access Unilever Caribbean Limited Annual Report 2022 to answer the Questions.
a) Evaluate the company’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of IAS 1 as a guide.
b) Identify and discuss key accounting principles and standards applied in the company’s financial reporting process indicating their reasons for choosing these and how they were applied. Comment briefly on the appropriateness of the choices made given the company’s industry, location and type (e.g. MNC, regional conglomerate, etc.)
c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer,…
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- Many companies make annual reports available on their corporate websire, often under an Investors tab. Annual reports also can be accessed through the SEC's EDGAR system at www.sec.gov (under Filings, click Company Filings Search, type in Company Name, and under Filing Type, search for 10-K). Access the most recent annual report for the following U.S.-based multinational corporations to complete the requiremects: International Business Machines Corporation. Intel Corporation. Required a. Identify the location(s) in the annual report that provides disclosures related to foreign currency translation and foreign currency hedging. b. Determine whether the company's foreign operations have a predominant functional currency.c. Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years. Compare the relative…arrow_forwardMaurice Ltd. is a private Canadian company. It has been preparing its financial statements in accordance with IFRS but is now considering a change to ASPE. For its Year 6 financial statements, Maurice reported the following in accordance with IFRS: Net income $3,700 Total debt $25,900 Current assets 14,300 Total shareholders’ equity 22,200 Current liabilities 11,400 You have identified the following three areas in which Maurice’s accounting policies have differences between IFRS and ASPE: Impairment losses Convertible bonds Income taxes The controller at Maurice provides the following information with respect to each of these accounting differences and indicates that the Year 6 financial statements reflect the proper accounting for these items in accordance with IFRS: Impairment Losses Impairment tests were performed on the company’s equipment for Years 5 and 6 with the following results: December 31, Year 5 December 31, Year 6 Cost of…arrow_forwardarkman Sporting Goods is preparing its annual report for its fiscal year. The company's controller has asked for your help in determining how best to disclose information about the following items: Required: Indicate whether each item should be disclosed (A) in the summary of significant accounting policies note, (B) in a separate disclosure note, or (C) on the face of the balance sheet. 1. A related-party transaction.2. Depreciation method.3. Allowance for uncollectible accounts.4. Composition of investments.5. Composition of long-term debt.6. Inventory costing method.7. Number of shares of common stock authorized, issued, and outstanding.8. Employee benefit plans.arrow_forward
- GlaxoSmithKline is a global pharmaceutical and consumer health-related products company located in the UnitedKingdom. The company prepares its financial statements in accordance with International Financial ReportingStandards.Required:1. Use the Internet to locate GlaxoSmithKline’s most recent annual report. The address is www.gsk.com/en-gb/investors/. Locate the significant accounting policies disclosure note.2. How does the company value its property, plant, and equipment? Does the company have any other optionsunder IFRS for valuing these assets? How do these options differ from U.S. GAAP?3. What are the company’s policies for possible reversals of impairment losses for goodwill and for othernon-current assets? How do these policies differ from U.S. GAAP?arrow_forwardSelect a public company that interests you. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities and Exchange Commission (SEC). It includes the company's financial statements and accompanying notes. The Form 10-K can be obtained from (a) the company's investor relations section of the company's website, (b) the search feature of the SEC's EDGAR database service or (c) searching using your search engine (Google, Bing, etc.) Based on the information in the company's most recent annual report, answer the following questions: 1) What amount of total assets does the company report on its balance sheet? 2) What amount of total liabilities does the company report on its balance sheet? 3) Using the accounting equation, determine the company's stockholders' equity. Compare this amount to the amount of stockholder's equity reported on the company's balance sheet. Do the figures match? 4) How many years of…arrow_forwardExplain why companies must use the Allowance Method, and not the Direct Write-Off Method, when dealing with collectible accounts. Then show a journal entry writing off an account with both methods. Note: Please see below as I don't believe what I came up with is detailed enough. Please include actual amounts for this problem. The amounts can be made up, but a journal entry utilizing both methods must be included. Let's assume that a corporation begins operations on November 1 in an industry where it is common to give credit terms of net 30 days. In this industry, approximately 0.3% of credit sales will not be collected. Next, let's assume that the corporation focuses on the bad debts expense. If the corporation's actual credit sales for November are $800,000, it will record an adjusting entry dated November 30 to debit the bad debts expense for $2,400 ($800,000 X 0.003) and credit an allowance for doubtful accounts in the amount of $2,400. As a result, its November income statement…arrow_forward
- Presented below are income statements prepared on a LIFO and FIFO basis for Kenseth Company, which started operations on January 1, 2019. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2020. The FIFO income statement is computed in accordance with the requirements of GAAP. Kenseth's profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profit-sharing. Income taxes are ignored. LIFO Basis FIFO Basis 2020 2019 2020 2019 Sales $3,000 $3,000 $3,000 $3,000 Cost of goods sold 1,130 1,000 1,100 940 Operating expenses 1,000 1,000 1,000 1,000 Income before profit-sharing 870 1,000 900 1,060 Profit-sharing expense 87 100 96 100 Net income $ 783 $ 900 $ 804 $ 960 Instructions Answer the following questions. a. If comparative income statements are prepared, what net…arrow_forwardAccess the company’s investor relations website or the SEC's EDGAR database (www.sec.gov/edgar.shtml). Inventory Turnover Ratio Analysis: Calculate and interpret the Inventory Turnover ratio for a company of your choice that is listed on a major stock exchange (e.g., NYSE, NASDAQ). Begin by accessing the company's two (2) most recent Annual Reports (Form 10-K) from their investor relations website or the Securities and Exchange Commission's EDGAR database. Explain how to find and access this report. Then, calculate the Inventory Turnover ratio using the formula: Inventory Turnover=Cost of Goods SoldAverage InventoryInventory Turnover= Cost of Good Sold/Average Inventory Interpret what the ratio reveals about the company's efficiency in managing its inventory. Discuss factors that might influence the ratio and implications for the company’s operations. Days' Sales in Inventory (DSI) Calculation and Analysis: Define Days' Sales in Inventory (DSI) and explain its significance in…arrow_forwardPlease answer all four questions within the attached document.arrow_forward
- Prime Corporation prepared its annual financial statements for its shareholders for the fiscal year ending December 31, 2029. Record whether the transaction below for Prime Corporation overstated (O), understated (U), or correctly stated (C) total assets, total liabilities, stockholders' equity, and net income in 2029. You must write "O", "U", or "C" in each blank for credit. Prime Corp. did not adjust its unearned revenue account for the $8,000 of revenue earned in December 2029. Assets: O/U/C? Liabilities: O/U/C? Equity: O/U/C? Net income: O/U/C?arrow_forwardCompare annual report in2022 for ANTA, Esprit and Giordano . Assess the extent of transparency of compliance and disclosure and identify any red flags/distortions from the information disclosed in the annual reports (like three companies key accounting policies, identify any significant differences among the three companies)arrow_forward(General Disclosures; Inventories; Property, Plant, and Equipment) Koch Corporation is in the process of preparing its annual financial statements for the fiscal year ended April 30, 2018. Because all of Koch’s shares are traded intrastate, the company does not have to file any reports with the Securities and Exchange Commission. The company manufactures plastic, glass, and paper containers for sale to food and drink manufacturers and distributors.Koch Corporation maintains separate control accounts for its raw materials, work in process, and finished goods inventories for each of the three types of containers. The inventories are valued at the lower-of-cost-or-market.The company’s property, plant, and equipment are classified in the following major categories: land, office buildings, furniture and fixtures, manufacturing facilities, manufacturing equipment, and leasehold improvements. All fixed assets are carried at cost. The depreciation methods employed depend on the type of asset…arrow_forward
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