The Accounting Policies Of The Companies

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

Rivalry: The rivalry between Coca-Cola and Pepsi is extremely high; however, both companies continue to remain profitable. Prior to the 1980s, pricing wars negatively affected profitability for Coca-Cola and Pepsi. After Coca-Cola renegotiated its franchise bottling contract and both companies increased concentrate prices, the rivalry began to focus on differentiation and advertising strategies. Through creative advertising campaigns, such as the “Pepsi Challenge” where Pepsi ran blind taste tests to demonstrate that consumers

cognizant of the fact that the choices he makes can affect the price a buyer pays

Pepsi Co. and Coca Cola, both are very well known multinational companies. They are so famous that they perhaps don’t need any introduction since almost everyone knows basic info about these companies and their widely used products. Both of these companies have been dealing in the production of flavored waters, plain drinking water and soft drinks for decades now and have always been each other’s competitors in almost all the mainstream products they have been producing.

The purpose of this paper is to define accounting, and identify the four basic financial statements. The paper also explains how the different financial statements are interrelated to each other and why they are useful to managers, investors, creditors, and employees.

The two major companies that manufacture beverages are PepsiCo and the Cocoa-Cola Co. These two companies have been in competition for many years and both companies have a variety of choices when purchasing one of their beverages. These companies can be identified through their products such as; if a person were to buy a Pepsi the person would know it came from PepsiCo, and if someone were to buy a coke they would know it was from the Cocoa-Cola Co.

when dealing with their number one assets: telecommunication licenses and Goodwill. A summary of the critical accounting estimates used in preparing Verizon financial statements is as follows: Wireless licenses and Goodwill are a significant component of the company’s consolidated assets. Both wireless licenses and Goodwill are treated as indefinite-lived intangible assets and, therefore are not amortized, but rather are tested for impairment annually in the fourth fiscal quarter, unless there are events requiring an earlier assessment or changes in circumstances during an interim period that indicate these assets may not be recoverable. Verizon believes its estimates and assumptions are reasonable and represent appropriate marketplace considerations as of the valuation date. Although the company uses consistent methodologies in developing the assumptions and estimates underlying the fair value calculations used in its impairment tests, these estimates are uncertain by nature and can vary from actual results. It is possible that in the future there may be changes in the assumptions, including estimated cash flow projections, margins, and growth rates and discount rates which could result in different fair value estimates and an impairment charge.

As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the

1.In week one reading the reader will find out there is four primary financial statement balance sheet, income statement, statement of stockholder’s equity, and statement of cash flows.

If a company earns net income of $25 million in Year 8, has 10 million shares of stock, pays a dividend of $1.00 per share, and has annual interest costs of $10 million, then | |

PepsiCo. revenue recognition is based on the customer’s written sales agreement with a right of no returns allowed, upon shipment or delivery. Dr. Pepper is once the product has been delivered, there is an agreement on a fixed price or when the price has been determined, evident that an agreement does exists, and “reasonable assurance of collectability”. Both companies do follow GAAP guideline, on when revenue should be recognized, which is when the company has actually met their part of the term agreement, which is after the product has been shipped or delivered.

In an industry dominated by two heavyweight contenders, Coke and Pepsi, in fact, between 1996 and 2004 per capita consumption of carbonated soft drinks (CSD) remained between 52 to 54 gallons per year. Consumption grew by an average of 3% per year over the next three decades. Fueling this growth were the increasing availability of CSD, the introduction of diet and flavored varieties, and brand extensions. There is couple of reasons why the industry is so profitable such as market share, availability and diversity and brand name and world class marketing.

Both financial and managerial accounting analyze economic data, however the major differences between the two strands include; user groups, information type, regulatory control and reporting frequency (Atrill and McLaney, 2012)

 an analysis of the company’s accounting policies that are likely to affect interpretation of its financial reports (at least 3 policies)

PepsiCo is best known for Pepsi, the world’s second most popular soft drink after coca cola classic.Pepsi co is the international food and beverage company with sales of $29.3 billion and net income of $4.0 billion in 2004. Pepsi has 153000 employees and markets more than 500 varieties of food and beverage products in more than 200 countries.Pepsi started in 1960 to being the world’s third largest food and beverage company in world, behind only nestle and Kraft foods.