Coca Cola

Financial Statements
Background of Coca Cola
• First glass of Coca Cola was sold on May 8, 1886.

• American businessman Asa Griggs Candler purchased the Coca-Cola

formula and brand, forming the Coca-Cola Company in Atlanta in
1892.

• By 1895, Coca-Cola was being sold nationwide.

• In 1919, the company was sold to Ernest Woodruff's Trust Company of

Georgia and become publicly traded company.
Further Background of Coca Cola
• Headquarters in Atlanta, Georgia USA.
• Many Coca Cola subsidiaries, for example-Minute maid(beverage
company), Costa Coffee and Bodyarmor Sports Drink.
• Coca Cola Company’s well known brand:
• Coca Cola
• Fanta(1940)
• Sprite(1961)
• Diet Coke(1982)
• Coca-Cola Zero(2005) became million dollar brand in 2007
Equity – the value of shares issued by company.

Equity income refers to income that is received through stock dividends.

Income tax is a type of tax governments impose on income generated by businesses and
individuals within their jurisdiction.

A consolidated net income is the total income of the parent entity and its subsidiaries
excluding the unrealized income of the organization as a whole.

A non-controlling interest, also known as a minority interest, is an ownership

position wherein a shareholder owns less than 50% of outstanding shares and has no
control over decisions.
Dilution is the reduction in shareholders' equity positions due to the issuance or
creation of new shares.

Diluted earnings per share (diluted EPS) measures a company's profitability.

You calculate it by dividing the company's net income by the number of shares
outstanding.

The effect of dilutive securities is to reduce the price of shares and earnings
attributable to each share.

The foreign currency translation adjustment or the cumulative translation

adjustment (CTA) compiles all the fluctuations caused by varying exchange rate.

Derivations-Market risk losses from derivative contracts can come from a variety of
sources, including market movements.
The Unrealized Loss on AFS Securities is the cumulative expected market loss
if the CU were to liquidate every single investment under this accounting
treatment.

Other post-retirement benefits are benefits, other than pension

distributions, paid to employees during their retirement years.

Post-retirement benefits may include life insurance and medical

plans, or premiums for such benefits, as well as deferred-
compensation arrangements.
Cash and cash equivalents refers to the line item on the balance sheet that reports the
value of a company's assets that are cash or can be converted into cash immediately.

Short-term investments are financial investments that can easily be converted to cash,
typically within five years

Marketable securities are financial assets that can be easily bought and sold on a public
market, such as stocks, bonds, and mutual funds.

An equity investment is money that is invested in a company by purchasing shares of that

company in the stock market.

A deferred tax asset is an item on the balance sheet that results from the overpayment or
the advance payment of taxes.

Goodwill is the value of the business that exceeds its assets minus the liabilities.
Current maturity is defined as the portion of long-term debt that will come due
within the next 12 months.

A deferred income tax liability arises when book income exceeds taxable income.

Capital surplus, or share premium, most commonly refers to the surplus resulting
after common stock is sold for more than its par value.

Reinvestment is when income distributions received from an investment are

plowed back into that investment instead of receiving cash.

Shareholder equity represents the total amount of capital in a company that is

directly linked to its owners.
Accumulated other comprehensive income is a general ledger account that is classified
within the equity section of the balance sheet.

Treasury Stock is stock which is bought back by the issuing company, reducing the
amount of outstanding stock on the open market

A non-controlling interest, also known as a minority interest, is an ownership position

wherein a shareholder owns less than 50% of outstanding shares and has no control
over decisions.