Go to each company’s website and review the most recent financial
statements for each company and...

Question

Go to each company’s website and review the most recent financial 
statements for each company and answer the following questions.
What accounting standards are used?What auditing standards are used by the external auditors?Analyze and comment on the differences in the annual statements 
found on the companies' websites. Provide a few specific differences in 
content and format.How comparable are these financial statements?
Prepare a table for a period of three years showing some key 
financial information for the two companies. Include at least four items
 from the balance sheet, four items from the income statement, and four 
items from the statement of cash flow. Having reviwed and analyzed the 
financial information, please elaborate on the following three 
questions.
Which one of the two companies is the most profitable?Compare growth of revenues versus income over time and between the two companiesHow can you explain the difference in profitability between the two companies?Indicate in detail the information you used to answer the above questions.
Modular Case Assignment Expectations
It is important to answer the questions as posed.The discussion 
should be from 3 to 5 pages and written in a clear and concise manner. 
Support your discussion with references in APA format. You are 
encouraged to use Excel or other compatible spreadsheet when 
computations are involved.

Robert · Accepted Answer

Comparison of financial statements 
Novartis 
Novartis has been reporting its consolidated financial statements in compliance with 
the International Financial Reporting Standards (IFRS) which are published by the 
International Accounting Standards Board (IASB). These are made according to the 
concept of historical cost except for the items which need  to be recorded for at fair 
value.  
The company conducts its audits according to the Swiss Auditing Standards, 
International Standards on Auditing and the standards of the Public Company 
Accounting Oversight Board of the United States of America. For this, the company 
has to plan and perform the audits in order to obtain reasonable assurance regarding 
the integrity of consolidated financial statements. They should be free of material 
misstatements for the use by all stakeholders. 
Merck 
Merck presents its financials in accordance with Financial Accounting Standards 
Board (the “FASB”) standards. In the year 2012, Merck retrospectively adopted 
amendments introduced by FASB for the presentation of comprehensive income in 
financial statements. Consequently, Merck has presented a separate statement of 
comprehensive Income. However, there was no impact of adoption of this new 
guidance on the financial position of the company, the results of its operations or 
cash flows. 
The audits for the company were conducted in accordance with the standards of the 
Public Company Accounting Oversight Board (United States). Again, for compliance 
of these standards the company has to plan and perform audits for getting 
reasonable assurance about the integrity of the information contained in the financial 
statements so as much they are free from material misstatement. Also,

Go to each company’s website and review the most recent financial statements for each company and answer the following questions. What accounting standards are used? What auditing standards are used...

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