Accounting Principles Of A Consolidated Financial Position Or Results Of Operations

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Actual results may differ from these estimates Management believes that any reasonable deviation from those judgments and estimates would not have a material impact on our consolidated financial position or results of operations. To the extent that the estimates used differ from actual results, however, adjustments to the statement of earnings and corresponding balance sheet accounts would be necessary. These adjustments would be made in future statements. Some of the more significant estimates include goodwill and other intangible asset impairment, allowance for doubtful accounts, vendor allowances, asset impairments, liability for closed locations, liability for insurance claims, cost of sales, equity method investments and income taxes.…show more content…
Part 3: Accounting analysis
1. Identify your company’s critical accounting and financial reporting choices and financial estimates. Do not just cut and paste the significant accounting policies in the Management Discussion & Analysis or the Note to the statements. Identify which choices and use of estimates are of greatest concern to you when evaluating accounting quality and forecasting future performance.

Under both Management Discussion & Analysis section and Note to financial statements, Walgreens discusses the accounting methodology used and the assumptions underlying them. These would also include the effects accounting estimates adopted have on their financial presentation and the effect of changes in their estimates. However, the following are the methods and used of estimates that were found of greatest concern when evaluating Walgreens ' accounting quality and forecasting future performance.

Other Comprehensive Income Items


Income taxes – We are subject to routine income tax audits that occur periodically in the normal course of business. U.S. federal, state, local and foreign tax authorities raise questions regarding our tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the tax benefits associated with our various tax filing positions, we record a tax benefit for uncertain tax positions using the highest cumulative tax
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