StudentShare solutions
Triangle menu

Financial Reporting - Assignment Example

Not dowloaded yet

Extract of sample
Financial Reporting

The assets listed in Coca-Cola Company’s balance sheet are classified into two main categories, current and other assets. Current assets are divided into two sections, with the first one being cash and cash equivalents and short term investments (The Coca-Cola Company, 2013). All the other assets that do not make up part of current assets are the long-term assets that are listed individually. In a balance sheet, cash equivalents always appear with cash as the first of current assets. From research, it is noted that cash equivalents are non-cash assets that are highly liquid or can be converted into cash immediately. This means that cash equivalents are assets that can be readily sold or disposed of and converted into cash for immediate use. Just like cash, cash equivalents are usually low risk and return assets, meaning that their face value rarely changes much. From the annual report for The Coca-Cola Company, it can be seen that the total value for the total current liabilities for 2012 was $27,821,000,000 while the total value for the total current liabilities for 2011 was $24,283,000,000 (The Coca-Cola Company, 2013). It should be noted that 2012 was the most recent annual reporting period while 2011 was the previous annual reporting period for The Coca-Cola Company. ...
The creditors expect to be paid at a future date, so they review the financial statements to see if the company will be able to pay its debts in time. The creditors will look at the balance sheet to determine if the company has enough current assets to pay immediate debts and if the company’s debts can be covered by the assets that it owns. The creditors will also look at the annual reports to assess the liquidity of the company should it need to pay its debts immediately. Conversely, investors are the people who own the company, mostly in the form of shareholding. In any investment, the investors look to earn a return on their investment and get a return for their investment. This means that information contained in the balance sheet and income statements is important to the investors. The investors will look at dividends paid out to determine if they will earn a return on their investment, that is whether they will make a profit by investing in the company. The investors will also want to be sure that their original investment is paid back, so they look at the current assets and current liabilities to know if they will get paid the value of their investment. Finally, the employees of the company are assumed to want to work for the company for as long as possible. This means that the employees of the company expect the company to be a going concern, meaning that the company is expected to have sound performance and look to be profitable. To determine this, the employees of the company will look at the financial information presented in the balance sheet and income statements to determine if the company is growing or failing. ...Show more

Summary

Coca-Cola Company Financial Reporting From an analysis of the balance sheet of The Coca-Cola Company for the year ended December 31, 2011 and December 31, 2012, it can be noted that the assets in the company’s current assets are listed in the proper order (The Coca-Cola Company, 2013)…
Author : alexiekoch
Financial Reporting essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Financial Reporting"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Reporting Assignment
Finance reporting entails the complete preparation and presentation of organisations’ financial reports, which are useful in internal and external planning. The frequent users of financial reports are: government agencies, creditors, administrators, employee unions, entrepreneurs and investors.
9 pages (2250 words) Assignment
Financial reporting
The standard clearly clarifies when these items should and should not be made. Before the issue of this standard there was great concern in this area of accounting where companies had been accused of manipulating the financial statements and of creative accounting.
10 pages (2500 words) Assignment
International Financial Reporting Standards
In the international community the fastest growing accounting framework that is being used in the business industry of different countries is the international financial reporting standards (IFRS). The international financial reporting standards were created by the International Accounting Standards Board (IASB).
4 pages (1000 words) Assignment
Financial Reporting Question & Answers
The aim of the board is to set operational standards that apply equally to financial reports of both local and international public firms (Australian Accounting Standards Board [AASB] 2010). Standardization of the accounting standards refers a procedure of establishing and agreeing to the technicality of the set standards.
10 pages (2500 words) Assignment
Quality of Financial reporting
The company further tends to respond strategically in accordance with the changes to its pricing or volume of commodities produced. However, as the
1 pages (250 words) Assignment
Corporate Financial Reporting
In cases where the carrying amount is greater than the recoverable amount, an impairment loss is incurred and the same is recognized. The depreciation or amortization
8 pages (2000 words) Assignment
Financial reporting
It does not by any means represent the fair market value of an item (Barnes, 2000). This suggests that if a building is purchased by a company, then historical cost of the building is reported within the balance sheet, instead of recording it at its fair market
4 pages (1000 words) Assignment
Islamic Accounting & Financial Reporting
The policyholders lend money to the insurance companies and then they are paid interest against their investments (Choudhury, 1983). The involvement of interest caused distastefulness to spread in all Islamic cultures about traditional
10 pages (2500 words) Assignment
Financial reporting
The phenomena of CSER is evolving on daily basis all over the globe as it clearly and logically demonstrate and evident that the overall objective, missions and strategy of
6 pages (1500 words) Assignment
Financial Reporting and Analysis Assignment
This indicates that the internal financial strength of the company has been declining (Palepu & Healy, 2007). The company’s debt proportion is seen to be higher than the equity proportion, leading to a declining debt-equity ratio (Bragg, 2011). A high debt
5 pages (1250 words) Assignment
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation