Access the Nestlé home web page and download: Corporate Governance & Compensation Reports, Financial Statements for 2021
Question:
Access the Nestlé home web page and download: Corporate Governance & Compensation Reports, Financial Statements for 2021
Note: this file is available at:
https://www.nestle.com/sites/default/files/2022-03/2021-corp-governance-compensation-financial-statements-en.pdf
Answer the following questions:
Explain in details how does Nestlé Company account for goodwill and other intangible assets? Support your answer by writing the page number (s) in annual report.
(10 Marks)
State the amounts of goodwill and intangible assets as it appears in the annual report for 2020 and 2021. Support your answer by writing the page number in the annual report. (5 Marks)
Does Nestlé Company make any acquisitions during 2021? How do these acquisitions affect the goodwill? Support your answer by writing the page number in annual report. (5 Marks)
From 2021 annual report:
Determine the total amount of non-controlling interest in 2020 and 2021
State in which statement it is disclosed and in which section.
State the amount of controlling interest share and non-controlling interest share in Nestlé Company’s profit and dividends for 2020 and 2021
Nestlé Company prepared its consolidated financial statements in accordance with the International Financial Reporting Standards (“IFRS”), as mentioned in its annual report. Assuming that it was not mentioned in the annual report that the company is following IFRS; provide evidence from annual report (related to course subjects studied) that indicate that the company is following IFRS and not following GAAP?
State the amounts of impairment losses of goodwill and intangible assets in 2021.
Which cash generating unit suffered an impairment loss related to goodwill in 2021?
What were the underlying business reasons that required Nestlé to record a goodwill impairment in 2021 and what are the implications of that on Nestlé Company?
How did Nestlé reflect the goodwill impairment in its income statement and cash flow statement?
Which method did Nestlé use in preparing its cash flow statement? Provide a proof for your answer from the annual report.
Write your answer in the space provided in the following table:
Answer | Page(s) in Annual report | |
1- Total non-controlling interest 2020 and 2021 | ||
2- In which statement it is disclosed and in which section? | ||
3- - Controlling interest share - Non-controlling interest share in Nestlé Company’s profit and dividends for 2020 and 2021 | ||
4- Evidence from annual report (related to course subjects studied) that indicate that the company is following IFRS not GAAP | ||
5- Amounts of goodwill and other intangible assets impairment losses 2020 and 2021 | ||
6- cash generating unit/division/segment suffered an impairment loss of goodwill in 2021 | ||
7- What were the underlying business reasons that required Nestlé to record a goodwill impairment in 2021 and what are the implications of that on Nestlé Company? | ||
8- How did Nestlé reflect the goodwill impairment in its income statement and cash flow statement? | ||
9- Which method did Nestlé use in preparing its cash flow statement? Prove your answer. |
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill