The financial statements of Louis Vuitton are presented in Appendix F. The complete consolidated financial statements, including the notes to its financial statements, are available at the company’s website.

Instructions

Visit Louis Vuitton’s corporate website and answer the following questions from Louis Vuitton’s 2018 consolidated financial statements.

a. From the notes to the financial statements, how does the company determine the amount of revenue to record at the time of a sale?

b. From the notes to the financial statements, how does the company determine the provision for product returns?

c. Using the consolidated income statement and consolidated statement of financial position, identify items that may result in adjusting entries for deferrals.

d. Using the consolidated income statement, identify two items that may result in adjusting entries for accruals.