AB302 Intermediate Accounting Final Course Assessment The purpose of this project is to assess your accounting knowledge and ability to read and interpret the financial statements of a publicly-traded...

AB302 Intermediate Accounting
Final Course Assessment
The purpose of this project is to assess your accounting knowledge and ability to read and interpret the financial statements of a publicly-traded company as well as to demonstrate your analytical and communication skills.
This project is NOT a financial statement analysis. Rather, it is an analysis and explanation of the company’s accounting practices.
Using the most recent annual report (10K) for the Coca-Cola Company (see link on Blackboard), answer the following questions. You will need to use the Consolidated Balance Sheet, Income Statement, Statement of Cash Flows, Statement of Comprehensive Income, Statement of Shareowners’ Equity and Notes to the Financial Statements.
1. Audit opinion
a. What is the auditor’s opinion of the financial statements? Were there any disagreements between management and the auditors on regarding the accounting or financial disclosures in the 10K?
2. Investments
a. Has the company invested in any debt or equity securities? If so, how have they classified them?
. Reconstruct all journal entries related to investments for the year.
3. Cu
ent Liabilities
a. Review the activity in the cu
ent liability accounts. Describe the nature of the company’s cu
ent liabilities.
4. Contingent Liabilities
a. Does the company report any contingencies? If so, explain in your own words.
5. Long-Term Debt
a. Does the company have any long-term debt? If so, describe the nature and terms of the debt.
. Reconstruct all the journal entries that appear to have been made with respect to long-term debt (don’t forget interest).1
6. Leases
a. Is the company involved in any leases as either a lessee or lessor? If so, how are they classified?
. When did the company adopt ASC-842?
c. What was the effect of this adoption on the company’s financial statements?
d. Reconstruct all the journal entries that appear to have been made with respect to leases.
7. Pensions and Other Post-retirement Benefits
a. Does the company have any pension or other post-retirement benefit plans? Describe those plans.
. Is the funded status of these plans different than any accrued or prepaid cost on the balance sheet? If so, explain in your own words the reconciliation of the two.
c. Explain, in your own words, what was included in the cu
ent year’s expense related to these plans.
d. Reconstruct all the journal entries that appear to have been made with respect to pension and post-retirement benefit plans.
8. Share-based Compensation
a. Does the company award any stock option plans, restricted stock unit, restricted stock or performance-based share units? If so, how does the company recognize compensation expense? Explain, in your own words, a description of the plans and the cu
ent year’s activity.
. Reconstruct all the journal entries that appear to have been made with respect to share-based compensation during the year.
9. Taxes
a. What did the company report as total tax expense for the year? Is there any intraperiod tax allocation? How did the effective tax rate differ from the statutory rate?
. Does the company have defe
ed taxes? If so, identify their:
i. Total cu
ent defe
ed tax asset
ii. Total cu
ent defe
ed tax liability
iii. Total non-cu
ent defe
ed tax asset, and
iv. Total non-cu
ent defe
ed tax liability
c. Read the tax footnote to the financial statements. Explain, in your own words, any schedules found in the note.
d. Reconstruct all the journal entries that appear to have been made with respect to taxes.
10. Stockholders’ Equity
a. Describe fully the capital structure of the company.
. Review the Statement of Stockholders’ Equity and explain the changes that occu
ed during the year.
c. Were dividends declared during the year? If so, how much was paid to each class of stock?
d. Reconstruct all the journal entries that appear to have been made with respect to all stockholder equity accounts (you may exclude any foreign cu
ency translation entries).
11. Earnings per share
a. What did the company report as basic and diluted net income per share?
. How does the company calculate basic and diluted net income per share?
c. Were any shares excluded from the calculation? If so, why?
12. Accounting changes and e
or co
ections
a. Did the company report any accounting changes or e
or co
ections in its 10-K? If so, what was the nature of these changes?
13. Cash flows
a. Does the company use the direct or indirect method on their statement of cash flows?
. Did the company have positive or negative cash flow for the year? What were the primary drivers in changes to its cash?
Your final submission should be typed in Times New Roman or Arial 12 point font and submitted in PDF format. The document should be well-formatted, easy to follow and easy to read. All journal entries should be clearly labeled and presented in good form in an appendix at the end of your submission. You should reference your journal entries by number in the body (written section) of your submission.
You will be graded on your presentation, explanation of analysis, identification of relevant data, analysis and interpretation of GAAP and your writing style (grammar, punctuation, spelling, etc).
This project is worth 100 points and accounts for 20% of your course grade.