Access the PepsiCo home web page From PepsiCo home page and then The Company, click on FINANCIAL INFORMATION, followed by Reports and results, then select the year 2017 to display and download the Annual report 10k 2017 on Form PDF.

Note: the financial statements of PepsiCo are available at:

www.pepsico.com/docs/album/investor/pepsico-inc-2017-annual-report.pdf

Instructions Use the annual report and accounts of 2017 to answer the following questions:

1-What are PepsiCo vision, mission and guiding principle? (may need search in the web)

Care for our customers, our consumers and the world we live in.

[Marks 8]

2-Companies tend to use the consolidation financial statements rather than Separate financials. Identify the advantages of consolidating the financial statements?

[Marks 4]

3-Demand for the company products may be adversely affected by changes in consumer preferences which may affect significantly demand and could adversely affect our business, financial condition or results of operations. How do the company manage this risk?

[Marks 6]

4-Write a memo, in no more than 300 words, explaining: (Hint: Explain and support your memo by suitable figures from the annual report.)

5-There are two type of leases in accounting explain them and mention the GAAP criteria to consider the lease as capital finance lease explain them in details.

[Marks 12]

6-Explain the difference between the operating lease and capital lease accounting wise? [Marks 6]

7-How much is the operating lease obligation in total?

[Marks 2]

8-In the annual report PepsiCo mentioned that they measure certain asset and liabilities using fair value measurement, according to FASB there are three level hierarchy for the fair value measurement technique explain them? Mention example from the balance sheet for asset and liabilities that were measured at fair value for each level if available.

[Marks 6]

9-According to ISAB, Debt investments are accounted either by the amortize cost or by fair value method. To identify the method used there is certain model. Please explain the model and its criteria.

[Marks 4]

10-Write a memo, in no more than 200 words, explaining: (Hint: Explain and support your memo by suitable figures from the PepsiCo annual report.)

11-How do the company first account and assign the goodwill?

[Marks 6]

12-What are the three categorization for intangible assets and are they amortized or impaired (provide examples)?

[Marks 8]

13-How much amortization did PepsiCo report from the intangible assets in 2016?

[Marks 2]