coca cola vs pepisco report Essay

1. Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt).

     PepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the carbonated soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the "Cola Wars", began in the 1960’s when Coca-Cola's dominance was being increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to continuously establish and

IFRS’s are a single set of accounting standards at a global level for all sectors. Accounting standards are trustworthy statements is the reflection of financial statements to be presented to the stakeholders . United kingdom has already adopted IFRS since 2005.I would be discussing on adoption of IFRS by United kingdom for this paper. The United

Using the Internet or Strayer databases, go to the FASB Website, located at http://www.fasb.org, and other resources to research the Disclosure of Postretirement Health Care and Life Insurance Benefits.

SFAS No. 87 “Employers’ Accounting for Pensions” maintains that pension information should be prepared on the accrual basis and retained three fundamental aspects of past pension accounting: 1. delaying recognition of certain events, 2. Reporting net cost, and 3. offsetting assets and liabilities” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011). “The components of pension costs reflect different aspects of the benefits earned by employees and the method of financing those benefits by the employer. The following are required to be included in the net pension cost recognized by the employer sponsoring a defined benefits pension plan: 1. Service cost, 2. Interest cost, 3. Return on plan assets, 4. Amortization of unrecognized prior service cost, 5. Amortization of gains and losses, 6. Amortization of the unrecognized net obligation or unrecognized net asset at the date of the initial application of SFAS No. 87” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011).

(b) Calculate the pension expense for 2011 and 2012 assuming that Flintstone Corp. accounts for its pension with the deferral and amortization approach under PE GAAP.

The administration and selling expenses of PepsiCo were $14176 and $ 12674 in the years 2005 and 2004 respectively, while the operating expenses in 2005 stood at 111.85% of those in the year 2004. Similarly, the total operating expenses of Coca Cola surged by 10.75% in year 2005 as compared

increase when the company or the employees make additional cash contributions. Pension benefits are paid out when employees retire and this reduces the plan‟s assets. d. Pension expense is determined using the expected return on plan assets (not the actual return). The expected return on the assets reduces the expense. The pension plan assets are measured on the balance sheet each period at

Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve.

How did the pension plan changes affect Harnischfeger’s financial statements in 1984? Are these changes likely to affect future profits?

Performing a financial analysis is very useful for any businesses to enhance the knowledge of performances, strengths and stability of their financial. This paper intends to compare and contrast the qualitative and financial statements of the past three years of the Multinational companies of soft drinks, Coca-Cola and PepsiCo. Currently, both companies are business competitors and they highly regard their customer’s base loyalty. To familiarize ourselves with these two successful companies, we have to focus on their differences. Coca-Cola was founded in 1886, nowadays is available in more than 200 countries being the most popular beverage with its 94% worldwide recognition and being world’s third valuable brand.

For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used

Accordingly, the $39.3 million actuarial gain which resulted from the restructuring is included in Accrued Pension Costs in the accompanying Balance Sheet and is being amortized to income over a ten-year period commencing in 1984. The effect of the changes in the investment return assumption rates for all U.S. plans, together with the 1984 restructuring of the U.S. Salaried Employees' Plan, was to reduce pension expense by approximately $4.0 million in 1984 and $2.0 million in 1983, and the actuarial present value of accumulated plan benefits by approximately $60.0 million in 1984. Pension expense in 1983 was also reduced $2.1 million from the lower level of active employees. Other actuarial gains, including higher than anticipated investment results, more than offset the additional pension costs resulting from plan changes and interest charges on balance sheet accruals in 1984 and 1983.

The largest percentage decrease on Lockheed Martin’s income statement is ‘Other Operating Expense’, or the ‘Other Unallocated’ ac-count. This account includes FAS/CAS adjustment (Non-GAAP pension plans measures specifically allowed to defense contractors and U.S. government agencies), stock-based compensation, and other costs. A positive number here represents an offset between the GAAP FAS pension expense account and the Non-GAAP CAS pension e-pense account, which lowered the cost of pensions payable, as well as a profit in operations other than the five major business segments.

In May 2006, Westmount Retirement Residence was having very low profitability. Its very simple pricing model essentially charged each resident the same price per month regardless of their needs. This was due to a change in the patients´ demands. In the past, patients´ demands were similar and therefore the company´s pricing and costing system was appropriate. But changes in the population and in the requirements of the residents caused that the pricing model remained out of date and the costing system inappropriate. One of the problems observed when analyzing the company´s situation was that due to the costing system used it was not possible to have a clear picture of how much each of the services offered were costing. Consequently, it was clearly very difficult being able to define a pricing system that will give the shareholders the desired profit. The first step was to design a new costing system adequate for the company