Question: Part 1 ( Chapter 1 ) : Research Case Coca - Cola Access a recent copy of The Coca - Cola Company s SEC 1
Part Chapter : Research Case CocaCola Access a recent copy of The CocaCola Companys SEC K filing at wwwcocacola.com and address the following: What companies does Cocacola describe as significant equity method investments? How do these investments help Cocacola? What criteria does Cocacola use in choosing to apply the equity method for these investments? How does Cocacola describe its application of the equity method? What amount of equity income did Cocacola report? Cocacola discloses the fair values of its publicly traded bottlers accounted for as equity method investments. List the carrying amounts and fair values for these equity method investments that have publicly traded data. Discuss the relevance of each of these two values. Part Chapter : Research Case Pelotons Acquisition of Precor On April Peloton Interactive Peloton acquired Precor, Inc. Access Pelotons financial statements and media reports near the time of the acquisition, and answer the following questions: Why did Peloton acquire Precor? How did Peloton account for the Precor acquisition? What amount of goodwill did Peloton recognize in the combination? Prepare a schedule that computes the goodwill recognized in the acquisition as the difference between the consideration transferred for Precor and the fair values of the individually identified assets and liabilities acquired. What were the acquisitionrelated costs Peloton incurred regarding the combination, and how were these costs accounted for? How did Peloton report the Precor acquisition in its statement of cash flows? Part Chapter : Research Case Costcos Noncontrolling Interests Costco Wholesale Corporation owns and operates membership warehouses in the United States, Canada, United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, and Iceland. Costco also engages in retail operations through a majorityowned subsidiary in Taiwan. The outside equity interests not owned by Costco in the Taiwanese subsidiary are presented as noncontrolling interests in Costcos consolidated financial statements. Access Costcos K annual report, and answer the following: How does Costco present the noncontrolling interest in the following financial statements? Consolidated Balance Sheet Consolidated Income Statement Consolidated Statement of Other Comprehensive Income Consolidated Statement of Cash Flows Explain how Costcos presentations of the noncontrolling interest reflect the acquisition method for consolidated financial reporting as a single economic entity.
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