FINANCIAL REPORTING ASSIGNEMNET

Financial Reporting Assignment

Financial Reporting Assignment

Section A

Introduction of the Companies

In order to analyse the financial performance of the companies in the beverage industry, the following companies finances will be analysed; Coca Cola, Pepsi and Dr. Pepper. These companies have been chosen due to the high level of competition existing between them. The financial analysis will help us in finding out the market leader and the most profitable organization among all three of the companies (Elliot & Elliot, 2008). Coca Cola and Pepsi have become international brands and thus they are competing with one another in many beverage markets of the world. In UK Coca Cola is a substitute of Dr. Pepper and thus always compete with each other in order to provide best quality to its customers. Therefore the team decided to analyse the data present in the annual reports of the three companies for the years 2009, 2010 and 2011.

Sustainability Reports

The following sustainability report shows the competitors position against the Coca-Cola internally and externally.

Coca-Cola

Pepsi

Dr. Pepper

water stewardship

Human sustainability

environmental sustainability

Human and Workplace rights

environmental sustainability

ethical sourcing

Active Healthy living

Talent Sustainability

Workplace sustainability

Marketing responsibility

Health and wellness

Packaging Sustainability

Corporate sustainability

Therefore the above results show a similar sustainability of the all the three companies due to the fact that they operate in the same business environment, have to follow same rules and regulations of the beverage industry in UK . The only difference between the three companies is the charities done by Dr. Pepper which shows that this company is more active against Pepsi and Coca-Cola.

Corporate Governance

There is four different correlations on the basis of which there difference in the governance of companies in different countries of the world. These are as following:

variation in the value of ratios of the listed companies as compared to their country's GDP;

how widely the shares are held of the listed companies;

cultural considerations; and

The level of difference in the managements of the organizations.

Corporate governance is an integration of regulations and the sustainability characters of the organization. Due to this reason different companies adopt different statements and variety of policies in order to ensure that they are able to run their business successfully and satisfy the values of their shareholders. In case of Pepsi they are committed with the policies of providing human rights, animal testing and political contribution. Multinational companies like Coca-Cola, Pepsi and Dr. Pepper, thus they have to face different regulations in different countries of the world because of the correlation between the four different governance levels in these countries (Revsine, Collins & Johnson, 2002).

Foreign Currency Translations

The foreign currency translation is the conversion of the currency into a primary economic environment used in which these companies operate. In order to analyse the financial ratios of the above three companies it is important that similar currency is used because they operate in different parts of the world and thus difference in the currency will affect the ratios of the three companies (Elliot & Elliot, 2008).

Evaluation of the Companies Accounting Ratios

In order to avoid any differences in ...