In its annual report 1999, Roche, the Swiss pharmaceuticals company provides for the following information relating to the balance sheet item other current assets:

Other current assets (in millions of Swiss francs): 1999 1998

Accrued interest income 127 54

Prepaid expenses 1,122 536

()

Total other current assets 2,633 1,469

Required:

A) Explain what the accrued interest income represents. Illustrate your explanation showing with your own figures the impact of the adjusting entry on the financial statements (250 Minimum words)

B) Explain what the prepaid expenses represent. Provide examples of prepaid expenses a company such as Roche could have reported. Illustrate your explanation showing, with your own figures, the impact of the adjusting entries on the financial statements (250 Minimum words).

C) Provide a Conclusion paragraph of at least 100 words that summarizes the main points of the paper.