International acco unting project

team leader : Yasmin Ahmed ashour ali

(200639) Yasmin Ashraf Said: ( 200640)
mai muhamed megahed :(200560)
Nermin mounir Abdullah : (200593)
Abdulrahman Hesham Ahmed (200294)
Question 1 :
The coca cola vision is based on the concerned factors :
Done sustainably
the company`s sustainability efforts cover water , women , community
well-being , sustainable packing , climate protection , human and workplace
rights and sustainable .
The company aims to reduce the sugar content in its prouducts
and offer more low – or no- sugar alternatives .
▶ Love brand
Reliable and high-quality product , the brand has built trust among
customers.

Continous innovation : for a brand to stand the test of time .

For better shared future: coca-cola plans to drive affordability to cater to

different consumer needs and create growth in a ‘’dynamic’’ macroeconomic
environment .
The objective of coca-cola company are refresh the world and make a
difference.
▶ Question 2
Window dressing is a technique used by companies to make their financial
statements appear more attractive to investors and stakeholders. The process
involves manipulating financial statements, such as income statements, balance
sheets, and cash flow statements, to show better results than they really are. This
deceptive practice can create the illusion of growth, stability, and profitability when,
in reality, the company is not performing well. Companies that engage in window
dressing can manipulate their financial statements in various ways, such as
delaying .expenses, accelerating revenue recognition, and inflating asset values
Companies that fell Victim to Window Dressing
1-Misleading investors: One of the most significant ethical concerns of window
dressing is that it can mislead investors. By presenting a distorted picture of
financial performance, companies can attract investors who might not otherwise
be interested,
 Companies that fell Victim to Window Dressing
▶ 1-Misleading investors: One of the most significant ethical concerns of window
dressing is that it can mislead investors. By presenting a distorted picture of
financial performance, companies can attract investors who might not
otherwise be interested, or who might pay more for shares than they are
actually worth. This can lead to a "bubble" effect, in which the market value of a
company becomes artificially inflated. When the true financial position of a
company is revealed, investors can .suffer significant losses
2-Violating accounting standards: Window dressing can also violate accounting
standards. For example, companies that engage in off-balance -sheet financing
may be violating Generally accepted Accounting principles (GAAP), which
require that all material financial information be reported on the balance sheet.
This can lead to regulatory action, fines, .and other legal consequences
3-breaching fiduciary duties: company executives have a fiduciary duty to act in the best interests of
shareholders, which includes providing accurate and transparent financial information. When they
engage in window dressing, they are failing in this duty, and can be held liable for .Any losses suffered
by shareholders as a result
One of the most common financial tricks used by companies to manipulate their financial statements is
window dressing. Window dressing is a technique used by companies to make their financial
statements appear more attractive to investors and stakeholders. The process involves manipulating
financial statements, such as income statements, balance sheets, and cash flow statements, to show
better results than they really are. This deceptive practice can create the illusion of growth, stability, and
profitability when, in reality, the company is not performing well. Companies that engage in window
dressing can manipulate their financial statements in various ways, such as delaying .Expenses,
accelerating revenue recognition, and inflating asset values
. how companies use window dressing to deceive investors and .stakeholders

1-Enron Corporation - One of the most famous cases of window dressing is Enron Corporation.
The company used off-balance-sheet financing to hide its debt, inflated its profits, and
manipulated its stock price. Enron's accounting practices were so misleading that the company
filed for bankruptcy in 2001, and its top executives were indicted on charges of .fraud and
conspiracy
2-WorldCom - WorldCom used window dressing to inflate its earnings through fraudulent
accounting practices.
▶ The company fraudulently inflated its revenue by capitalizing expenses, creating fictitious
revenues, and manipulating its accounting records. In 2002, WorldCom filed for .bankruptcy, and
its CEO was convicted of fraud and conspiracy charges
3-Lehman Brothers - Lehman Brothers used window dressing to hide its debt and leverage ratios
by using repo transactions, which were improperly recorded on the company's balance sheet.
This practice allowed the company to over-report its liquidity position and under-report its
leverage ratios. In 2008, Lehman Brothers filed for bankruptcy, and its .collapse triggered the
global financial crisis

These examples highlight the severity of the consequences of window dressing. Companies that
engage in this deceptive practice not only harm their investors and stakeholders but also put their
reputation and survival
Question 3 :
Risks :
1global presence and political influence : coca-cola extensive global
presence exposes the company to diverse political landscapes , ranging from
stable democracies to authoritarian regimes .
2taxation and trade policies : taxation policies can significantly affect
coca-cola`s profitability and financial performance .

the rivalry between coca-cola and pepsi .

 4- the company has faced challenges with managing the supply
chain effectively , such as unexpected disasters and political instability .
(Question 4) 4) Write a memo explaining: (Hint: Explain and support your memo by suitable figures
from the Coca Cola annual report.)
A) Coca Cola Company has classified the intangible assets into three categories. Explain them (give
examples for each category with their carrying value)?
Coca cola company has classified the intangible assets into Indefinite and definite and these figures
show the classifications of them and their carrying value
b) How does Coca Cola account intangible assets (explain the three types)?
Coca-Cola adheres to accounting standards and practices outlined in IAS 38 when accounting for their intangible assets
and goodwill. This is reflected in their report.
Coca-Cola categorizes their intangible assets into three groups:
1. Intangible assets with definite lives that are subject to amortization.
2. Intangible assets with indefinite lives that are not subject to amortization.
3. Goodwill.
Determining Useful Lives: The useful lives of identifiable intangible assets are determined based on various factors such
as contractual terms, historical performance, long-term strategy, local regulations, economic factors, competition, and
market conditions.
Impairment Testing: Coca-Cola conducts impairment tests on intangible assets with indefinite useful lives, including
trademarks, franchise rights, and goodwill, on an annual basis or more frequently if there are indications of potential
impairment. These tests utilize different valuation methodologies, such as discounted cash flow models and a market
approach, to determine the fair value of the assets or reporting units.
Goodwill Impairment Testing: Goodwill impairment tests are performed at the reporting unit level, typically one level below
the operating segments. The fair value of the reporting unit is compared to its carrying value, which includes goodwill. If
the fair value is lower than the carrying amount, goodwill is written down. Coca-Cola has the option to conduct a
qualitative assessment of goodwill to determine if impairment testing is necessary.
Recording Impairment Charges included goodwill to other operating charges or loss
c) What was the composition of identifiable and unidentifiable intangible assets reported by Coca Cola 2023?
Intangible assets are assets that lack physical substance and are not monetary in nature. These assets can be categorized into
two groups: identifiable and unidentifiable. Identifiable intangible assets are assets that can be distinguished from other
assets and have the potential to be sold independently by the company.
Intellectual property, patents, copyrights, trademarks, and trade names are all examples of intangible assets that can be
easily identified.
Unidentifiable intangible assets, on the other hand, are assets that cannot be physically separated from the company.
Goodwill is the most prevalent type of unidentifiable intangible asset
And these figures show the identifiable and unidentifiable intangible assets reported by Coca Cola 2023
e) How much impairment did Coca Cola report from the intangible assets and goodwill?
▶ Question 5 :
A business combination agreement happens when two or more entities
combine together . In the process ,one entity aquires another entity that
helps them to grow in size, expand the market , expand yhe customer base
and diversify.

The characteristics of business combination blew are of at most importance

in the business combination , which involve one organization taking control
of another business .
1. Target business viability
2. Consideration
3. Later combination
It has 3 types :
4. Horizontal
5. Vertical
6. Lateral combianation
▶q6 It also has advantage and disadvantage mergers and acquisitions
are a part of the business lifecycle ,providing opportunities for growth and
diversification
▶ It’s a space . M&A activity can rise and fall from year to year the structure of
the transaction and the reasons they are entered into can change as well.
But one thing stays the same – the completion of a merger
Can involve a staggering number of details , espically if the deal has an
international component .
The entire M&A process requires precise timing .
▶ If a compliance or transactional detail falls through the cracks , your
organization can face delays penalties , and other issues .to help
mitigate these risks and develop a soild merger plan , this article
explores the various phases of the deal from due diligence work to deal
closure .
The 10 key phases of a merger and acquisition deal
1. Strategy development
2. Target identification
3. Vahuation analysis
4. Negotiatio
5- conduct due
diligence 6- deal closure
7 financing and
restructueing
8 integration and back-
office planning
9post-merger compliance
10- business as usual
▶ Question 7 :
What are the expections to not to consolidate the financial statement
and what are the benefits of consolidating the financial statements ?
Exceptions : lack of control (having significat influence but not control
over
financial and operating policies ) as well as joint ventures .

Benefits : it offers a comprehensive overview of the financial well-being as a

singular entity streamlines analysis for investors and stakeholder , and
potentially enhances borrowing capacity .
▶ References

Investor cola company …………….

Weeply ………………
Bartlepy …………..
Research gate .net ……………….
Stock analysis on net ………………….
Corporate fianance institute .com...