Revenue Recognition Policy - The Coca-Cola Company

The above snapshot is from F10K submitted by The Coca-Cola Company for year 2010. The extract highlights the revenue recognition policies obtained by the company. It is in accordance with the accounting standards. I can recall in Level I, I had gone through these policies. According to US GAAP:

"It specifies that revenue should be recognized when it is “realized or realizable and earned.”

1. There is evidence of an arrangement between buyer and seller.

2. The product has been delivered, or the service has been rendered.

3. The price is determined, or determinable.

4. The seller is reasonably sure of collecting money."

Since the company follows USGAAP, the snapshot is in accordance with the standards explained in Level I.

Principles of Consolidation - Extract from The Coca Cola Company (F10K)

As I am studying FRA now a days and going through Reading 22 and 23. In the previous related post I had shared the snapshot of consolidated income statement. Above is the snapshot of Principle of Consolidation taken from foot notes. Variable Interest Entities (VIEs) are discussed in a sub LOS in Reading 22 in detail. How the accounting treatment is done is also highlighted. I believe it is an amazing way to revise while going through financial statements of companies of such scale.

Coca-Cola Form 10K 2010 - Pension Plan Valuations

The above snapshot is taken from the Form 10K submitted by Coca Cola for year 2010. The snapshot is about the pension plan valuations, the assumptions used, estimated discount rate, actuarial assumptions, the return on planned asset, the estimated obligations etc. A brief overview of these terminologies has been given in the CFA Level I Curriculum under FRA while detailed discussion is found in Reading 23, Employee Compensation in FRA for Level II. How 'actually' actuarial assumptions are made is beyond the scope whereas the amount of obligation, how it is calculated, what disclosures are necessary, how change in assumptions is treated and their impact is discussed in detail. As I am done with Reading 23 and going through the snapshot for me is very enjoyable and more or less a 'real life revision'.