COCA-COLA: A CASE STUDY ON THE EQUITY METHOD Coca-Cola lists significant equity method investments on its balance sheet. Visit Coca-Cola's Web site and obtain the 2012 annual report. Review Coke's 2012 annual report and answer the follow- ing questions: 1. What are Coke's major equity method investments? Prepare a brief summary 2. What amount of income does Coke report on these investments, and how significant are those amounts to 3. Compare and summarize reported income amounts between 2011 and 2012. Can you account for any 4. What type of intercompany transactions does Coke engage in with its equity method affiliates? You may 5. Refer to Note 6. Can you explain how Coke recognizes gains and losses when its equity method affiliates Coke's overall profitability? changes? focus on transactions with the largest equity affiliate Coca-Cola Enterprises, Inc sell shares of common stock to the public? INTERNET ASSIGNMENT Visit the Ford Motor Company Web site and review Ford's 2012 annual report. You will note that Ford makes numerous investments in other companies. Prepare a brief summary of intercompany investments included by Ford (you will want to look at the financial state- ments and the notes) a. Does Ford report any investments carried as trading securities, available-for-sale securities, or held-to-maturity securities? If so, summarize their significance to both the balance sheet and income statement. b. Does Ford report any investments carried under the equity method? If so, summarize their significance to both the balance sheet and income statement. What additional disclosures, if any, are made concerning equity method investments? c. Did Ford realize any gains or losses from security sales during 2012? d. Has Ford tested for goodwill impairment during 2012? Did Ford experience an impairment during 2012? COCA-COLA: A CASE STUDY ON THE EQUITY METHOD Coca-Cola lists significant equity method investments on its balance sheet. Visit Coca-Cola's Web site and obtain the 2012 annual report. Review Coke's 2012 annual report and answer the follow- ing questions: 1. What are Coke's major equity method investments? Prepare a brief summary 2. What amount of income does Coke report on these investments, and how significant are those amounts to 3. Compare and summarize reported income amounts between 2011 and 2012. Can you account for any 4. What type of intercompany transactions does Coke engage in with its equity method affiliates? You may 5. Refer to Note 6. Can you explain how Coke recognizes gains and losses when its equity method affiliates Coke's overall profitability? changes? focus on transactions with the largest equity affiliate Coca-Cola Enterprises, Inc sell shares of common stock to the public? INTERNET ASSIGNMENT Visit the Ford Motor Company Web site and review Ford's 2012 annual report. You will note that Ford makes numerous investments in other companies. Prepare a brief summary of intercompany investments included by Ford (you will want to look at the financial state- ments and the notes) a. Does Ford report any investments carried as trading securities, available-for-sale securities, or held-to-maturity securities? If so, summarize their significance to both the balance sheet and income statement. b. Does Ford report any investments carried under the equity method? If so, summarize their significance to both the balance sheet and income statement. What additional disclosures, if any, are made concerning equity method investments? c. Did Ford realize any gains or losses from security sales during 2012? d. Has Ford tested for goodwill impairment during 2012? Did Ford experience an impairment during 2012
