The internet is a good place to get information that is useful to you in your study
Question:
The internet is a good place to get information that is useful to you in your study of accounting. For example, you can find information about current events, professional accounting organizations, and specific companies that may support your study.
The Philips Company was founded in 1891, by Gerard Philips and his father Frederik. Frederik. It is one of the largest electronics companies in the world and employs around 105,000 people across more than 60 countries.
Philips is organized into three main divisions: Philips Consumer Lifestyle (formerly Philips Consumer Electronics and Philips Domestic Appliances and Personal Care), Philips Healthcare (formerly Philips Medical Systems), and Philips Lighting. As of 2012[update], Philips was the largest manufacturer of lighting in the world measured by applicable revenues Philips has a primary listing on the Euronext Amsterdam stock exchange and is a component of the Euro Stoxx 50 stock market index. It has a secondary listing on the New York Stock Exchange.
You can directly access the annual report on the below link:
https://www.philips.com/a-w/about/investor/financial-reporting/annual-reports.html
Use the 2016 Annual report of Philips to answer the following questions:
1- Stakeholders can affect or be affected by the organization's actions, objectives and policies. Discuss at least two types of stakeholders and give examples from the Philips annual report to justify your answer. Also explain the reason of their interest in the financial statements.
2- In which category of users or stakeholders do you think the following fit from the Philips Annual report 2016?
a. Frans Van Houten
b. Audit & Risk committee
c. Ernts & Young LLP
d. Apollo Global Management LLC
e. World Heart Federation (WHF)
3- As you learned in Unit 1, Session 3, the major environmental factors impacting on an organization can be grouped under four headings: political/legal, economic, social/demographic and technological (PEST analysis). Giving examples from the annual report, discuss the impact of each of the elements in the PEST analysis on Philips.
4- The distinction between cash transactions and credits transactions is fundamental to bookkeeping and accounting. Elaborate the main difference between these two-accounting systems and refer the details from Philips annual report 2016.
5- IAS 16 Property, plant and equipment identifies and describes two different models of accounting for tangible non-current assets. Discuss the importance of these two models for Philips and describe the depreciation methods used by Philips.
6- In preparing financial statements in accordance with GAAP, there are certain accounting policies that may require a judgment or estimation in their application. Give examples of Philips estimates and assumptions reported in consolidated financial statements.
7- Transaction takes place when one party exchanges or promise to exchange good or service with another party for money. Identify the difference between revenue expenditure and capital expenditure and provide the example from Annual report of Philips 2016.
8- Contingent Liabilities are those obligations that are contingent on events that have not yet taken place. Discuss the contingent liabilities and provide the contingent liabilities example from the Annual Report of Philips.
9- Explain why the going concern basis is important in understanding Philips financial statement; Support your answer with evidence from Philips annual report.
10- Classify the revenue recognition method(s) used by Philips as discussed in annual report. Explain the rationale underlying the appropriateness of methods used by Philips.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello