Coca Cola Company And Debt Securities

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The Coca Cola Company is leading Beverage Company in the world, serving more than 200 countries. In the last quarterly and full year report for 2014 The Coca Cola Company reported the following number: “Global volume growth of 2% for the full year and 1% in the quarter, net revenues declined 2% in the quarter; excluding the impact of structural items, comparable currency neutral net revenues grew 4% ,there was also a change in the global value share when it came to nonalcoholic ready-to-drink beverages in both the quarter and full year and Lastly they were able to report in the full-year that what they earned in cash from their operations had increased to $10.6 billion.” In this paper we will explain how The Coca Cola Company reported debt…show more content…
Coca Cola has three basic categories of reporting responsibilities, as it pertains to investing, in their company’s investment accounting policy. The first is Cash Equivalents; “Coca-Cola classifies time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents.” (Stock Analysis on Net, 2015) This is how the corporation manages their exposure to potential counterparty credit risk. The second category is Short-Term Investments; “Coca-Cola classifies time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments.” (Stock Analysis on Net, 2015) The third and final is Investments in Equity and Debt Securities; “Coca-Cola uses the equity method to account for investments in equity securities if investment gives Coca-Cola the ability to exercise significant influence over operating and financial policies of the investee. Coca-Cola includes proportionate share of earnings and/or losses of equity method investees in equity income (loss) — net in consolidated statements of income.” (Stock Analysis on Net, 2015) This third category accounts for the bulk of the Coca Cola Corporation’s stock investments. It is reported in equity method investments in consolidated balance sheets. Additionally, Coca-Cola reviews all investments in equity and debt securities every reporting period (excluding
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