Overview

Publicly traded corporations' financial statements can be accessed in a number of ways, but one certain way is to use the U.S Securities and Exchange Comission (SEC) website. We will use this website to access a company's financial statements to examine the financial statements and footnotes for disclosures regarding accounting changes and estimates.

Instructions

We will be reviewing the financial statements of Coca-Cola and PepsiCo. The companies' complete annual reports, including the notes to the financial statements, are available online. Use the companies' financial information to answer the following questions:

Identify the changes in accounting principles reported by Coca-Cola during the three years covered by its income statements (2015-2017). Describe the nature of the change and the year of change.

Identify the changes in accounting principles reported by PepsiCo during the three years covered by its income statements (2015-2017). Describe the nature of the change and the year of change.

What types of estimates did PepsiCo discuss in 2017?

The financial statements can be found online. Please give an in depth answer to each of the three questions. THANK YOU!