Overview

It is important for a company to disclose the quantitative information as

well as the qualitative information. Transactions often occur over the

period that may not have a direct financial impact, however, are still

important to disclose to stakeholders.

Directions

For this assignment, you will choose to review the 10-K for either The

Coca-Cola Company or PepsiCo, Inc., and use that company for this entire

project. As you work through this project, you will be considering the

necessity of full disclosures.

Specifically, you must address the following rubric criteria:

Disclosure

1. Explain the importance of the full disclosure principle.

2. Provide a rationale for disclosing financial information to

stakeholders in a variety of financial reporting situations.

Specific Financials of a Given Company

Use the financials of either The Coca-Cola Company or PepsiCo, Inc. The

company you choose should be used to address the following:

1. Explain the disclosure requirements for related-party

transactions. Include the following details in your response:

A. Cite the codification section applicable in your answer.

B. Identify the type of information that is required or

important to disclose for these types of common

transactions.

 

2. Explain the disclosure requirements for contingent

liabilities. Include the following details in your response:

A. Cite the codification section applicable in your answer.

B. Identify the type of information that is required or

important to disclose for these types of common

transactions.

 

3. Explain the disclosure requirements for subsequent

events. Include the following details in your response:

A. Cite the codification section applicable in your answer.

B. Identify the type of information that is required or

important to disclose for these types of common

transactions.

 

4. Explain the disclosure requirements for major business

segments. Include the following details in your response:

A. Cite the codification section applicable in your answer.

B. Identify the type of information that is required or

important to disclose for these types of common

transactions.

 

5. Explain the disclosure requirements for interim reporting. Include

the following details in your response:

A. Cite the codification section applicable in your answer.

B. Identify the type of information that is required or

important to disclose for these types of common

transactions.

 

Accounting Change and Error Correction

Use the financials of either The Coca-Cola Company or Pepsi Co, Inc. The

company you choose should be to address the following:

1. Determine the impact on a company for an accounting

change. Consider the following question to guide your response:

 

A. How do companies account for accounting changes? For

example, if the company changed from one GAAP method to

another (e.g., LIFO to FIFO for inventory valuation).

2. Determine the impact that an error correction can have on a

company. Consider the following questions to guide your response:

A. What are the effects of errors on the financial statements?

B. If there was an Excel calculation error in a spreadsheet

calculating the depreciation expense for all the property,

plant and equipment that resulted in $3 million less expense,

how would this be corrected?

 

What to Submit

Submit your project as a 3- to 5-page Microsoft Word document with

double spacing, 12-point Times New Roman font, and one-inch margins.

Sources should be cited according to APA style.

Supporting Materials

The following resource(s) may help support your work on the project:

Textbook: Appendix C: Specimen Financial Statements: The Coca-Cola

Company

This appendix provides The Coca-Cola Company’s financial statements as

presented in the company’s 2020 10-K report.

Textbook: Appendix D: Specimen Financial Statements: PepsiCo, Inc.

This appendix provides PepsiCo, Inc.’s financial statements as presented in

the company’s 2020 10-K report

Website: PepsiCo, Inc. Form 10-K Annual Report

This website provides PepsiCo, Inc.’s Form 10-K.

 

Website: The Coca-Cola Company Form 10-K Annual Report

This website provides The Coca Cola Company’s Form 10-K.