2. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Study Abroad in Panama Coordinated by Dr. Tulio Sulbaran Tel: 601-266-6419 - Email: tulio.sulbaran@usm.edutulio.sulbaran@usm.edu 1 Ce THE UNIVERSITY OF SOUTHERN MISSISSIPPI Jul 2013 Comparing Accounting Reporting Practices of Nestle in Panama and Hershey in America Presented by: Aaron Thomas Tel: 601-927-8055 Email: aaron.m.thomas@eagles.usm.edu Center for Logistics, Trade and Transportation and College of Business

3. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Video Preamble

4. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Outline 1- Introduction 2- Information/Data Collection Approach 3- Case Study 4- Results and Results Impact Similarities Differences 5- Summary

5. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Introduction Investopedia defines financial statements as: “Records that outline the financial activities of a business, an individual or any other entity. Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and for readers.

6. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Introduction Panama is ranked 61st out of 183 economies in Doing Business 2012 The top 3 obstacles to running a business in Panama include Corruption, Practices of the Informal Sector, and an Inadequately Educated Workforce Panama is ranked 11th out of 29 countries in the South and Central America/Caribbean region, and its overall score is above the world and regional averages.

7. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Introduction The focus of this report is Comparing Accounting Reporting Practices of Hershey in America to Nestlé in Panama. In specific, the paper will focus on the different reporting practices of the two countries.

8. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Information/ Data Collection Approach I used Google search engine for my internet search I also used the WRDS database

9. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Information/ Data Collection Approach Through the Internet Search I found: The definition of Financial Statements Maps and locations of both companies Similarities and differences of financial reporting for both companies

10. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Information/ Data Collection Approach While in Panama I also collected information from interviews. I Interviewed Gloria Reyes at Nestlé's Latin America Headquarters.

11. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Information/ Data Collection Approach From the Interview I learned Why Panama was chosen as HQ Distribution in Panama and Latin America Some history of Panama

12. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Case Study Nestle is Located in Costa del Este World leader in Nutrition, Health and Wellness Chosen as Headquarters for Latin America

13. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Case Study Hershey is Located in Hershey, Pennsylvania A wholesale supplier of chocolate American founded and run

14. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Results and Results Impact This paper compared the preparation and presentation of financial statements in Panama and the United States.

15. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Results and Results Impact Similarities between IFRS in Panama & GAAP in U.S. Components of Financial Statements Measurement Attributes Focus of Statements Qualitative Characteristics Notes to Financials Goodwill

16. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Results and Results Impact Differences between IFRS in Panama & GAAP in U.S. Consolidation Statement of Income Inventory Earning-per-Share Development costs Impairment Develpoment Costs Extraodinary Items

17. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Results and Results Impact This study could help with educating Americans on: any pitfalls faced when Panama switched major differences in IFRS

18. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Summary Panama uses IFRS The U.S. uses GAAP The U.S. is switching to GAAP Many similarities/ Many new things to learn

19. Study Abroad in Panama July 2013 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business THE UNIVERSITY OF SOUTHERN MISSISSIPPI founded in 1910 Thanks! Center for Logistics, Trade and Transportation and College of Business