The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively. The complete annual reports, including the notes to the financial statements, are available online.
Instructions
Use the companies' financial information to answer the following questions.
a. Briefly discuss the currency used by each company in its financial statements. Does the currency used affect the comparability of their reports? Briefly explain.
b. What are the primary segments or product groups of these two companies as shown in their notes to the financial statements?
c. How are inventories for these two companies valued? How does their accounting for inventories affect comparability between the two companies?
d. Which company changed its accounting policies, which then affected the consistency of the financial results from the previous year? What were these changes?