Financial Reporting Process Essay

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Financial Statement Development and Analysis

Part A

Three (3) of the financial disclosures that would provide evidence as to whether Coca-Cola is achieving its objective are:

Coca-Cola’s mission declares the company purpose and standards by which Coca-Cola will operate. Coca-Cola’s roadmap starts with a mission that is lasting. The basic tasks of Coca-Cola are: to refresh the word, to inspire moments of optimism and happiness and to create value and a make a difference. Maximizing shareholders value over time is Coca-Colas’ mission. In order to achieve this mission, Coca-Cola Company has to execute a business strategy driven by four key objectives: maximize its long-term cans …show more content…
The balance sheet is the only statement which addresses a single point of time of the business calendar year. Balance sheets will not show true value assets. The historical cost may not reflect the current market valuation that why it is criticized for its inaccuracy. The balance sheet is not in position to reflect the true financial position because some of the company currents assets are valued on an estimated basis. Also the balance sheet can’t reflect those assets which can’t be expressed in monetary terms, such as, honesty, loyalty of workers, intelligence and skill.

The income statement has limitation: items maybe relevant but can’t be reliably measured are not reported such as brand recognition and loyalty, some number depends on estimates and judgments such as depreciation expense on salvage value estimated use of life and it all depends on accounting method for some numbers if you need to us FIFO or LIFO accounting to measure inventory level. Income statements limitations stems from estimation difficulties, fraud and reporting errors. The income statement includes estimates and judgment, which could mean that items that might be relevant but can’t be reliably measure are not reported. Income I

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