The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online.

Instructions

Use the companies’ financial information to answer the following questions.

a. 1. What specific items does Coca-Cola discuss in its Note 1—Accounting Policies? (Prepare a list of the headings only.)

2. What specific items does PepsiCo discuss in its Note 2—Our Summary of Significant Accounting Policies? (Prepare a list of the headings only.)

b. For what lines of business or segments do Coca-Cola and PepsiCo present segmented information?

c. Note and comment on the similarities and differences between the auditors’ reports submitted by the independent auditors of Coca-Cola and PepsiCo for the year 2017.