Question
Select a Fortune 500 company whose name starts with the first letter in C and obtain the companys most recent 10-K report at www.sec.gov Edgar
Select a Fortune 500 company whose name starts with the first letter in C and obtain the company’s most recent 10-K report at www.sec.gov Edgar system. (Do not use abbreviated financial statements from a financial website; you will need the Notes to the Financial Statements.)
Revenue:
a. When did the company adopt the new revenue recognition standard? Did the adoption cause them to need to make restatements?
b. What items does the company include in revenue? Are the types of revenue discussed in the Notes or in the MD&A?
c. Are there any reductions of revenues for returns, discounts, other items?
d. Does the company have any anomalies with its revenue recognition?
Income taxes:
e. Does the company have deferred taxes? Why or why not? How are they reported on the balance sheet? Do they impact income tax expense?
f. Does the company have any book/tax differences that are permanent differences?
g. Does the company’s note for income taxes discuss the impact of the 2017 TCJA? Are the effects of its implementation discussed in Note 1?
h. Does the company’s note for income taxes appropriately reflect the required detail? Explain the key required disclosures that are included.
Step by Step Solution
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Step: 1
a When did the company adopt the new revenue recognition standard ANSWER The company adopted the new revenue recognition standard on January 1 2018 Di...Get Instant Access to Expert-Tailored Solutions
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