What does Coca-Cola’s Form 10-k communicate about its short-term investments? Original blog posting (February 16, 2015)

Coca-Cola exhibition will open at the High Museum of Art in Atlanta On February 28, 2015 Exhibition will feature paintings, photographs, and other items related to Coke’s iconic curved bottle Will run through October 4, 2015 Fun fact: Coca-Cola is sold in every country in the world except for North Korea and Cuba

The Cola-Cola Company

The Cola-Cola Company, 2013 Form 10-K, p. 89

The Cola-Cola Company, 2013 Form 10-K, p. 89

The Cola-Cola Company, 2013 Form 10-K, p. 89

The Cola-Cola Company, 2013 Form 10-K, p. 89

The Cola-Cola Company, 2013 Form 10-K, p. 89

The Cola-Cola Company, 2013 Form 10-K, p. 122

The Cola-Cola Company, 2013 Form 10-K, p. 74

The Cola-Cola Company, 2013 Form 10-K, p. 75

Question 1 How does Coca-Cola classify its investments in debt and marketable securities? How does Coca-Cola classify its investments in equity securities?

Question 2 Which gains and losses related to investments are included in the income statement? Which gains and losses related to investments are included in the consolidated balance sheets as a component of Other Comprehensive Income?

Which categories of investments are adjusted to fair value? Question 3 Which categories of investments are adjusted to fair value?

Question 4 Let’s say that Coca-Cola has Apple stock that it has classified as a trading security. How and when will it determine the fair value of that Apple stock?

Question 5 Now let’s say that Coca-Cola has an investment in an equity security (stock) that is not traded on a daily exchange traded market. Assume that Coca-Cola has classified this investment as a trading security. How and when will it determine the fair value of that equity security?

Question 6 Where can you find Consolidated Net Income on the excerpts of the financial statements included here?

What does “unrealized” mean with respect to investments? Question 7 What does “unrealized” mean with respect to investments?

Question Recap How does Coca-Cola classify its investments in debt and marketable securities? How does Coca-Cola classify its investments in equity securities? Which gains and losses related to investments are included in the income statement? Which gains and losses related to investments are included in the consolidated balance sheets as a component of Other Comprehensive Income? Which categories of investments are adjusted to fair value? Let’s say that Coca-Cola has Apple stock that it has classified as a trading security. How and when will it determine the fair value of that Apple stock? Now let’s say that Coca-Cola has an investment in an equity security (stock) that is not traded on a daily exchange traded market. Assume that Coca-Cola has classified this investment as a trading security. How and when will it determine the fair value of that equity security? Where can you find Consolidated Net Income on the excerpts of the financial statements included here? What does “unrealized” mean with respect to investments?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Related video resources can be found at http://www.youtube.com/user/accountingheadlines Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu