A) The Coca-Cola Company is the world’s leading owner and marketer of nonalcoholic beverage brands and the world’s largest manufacturer, distributor and marketer of concentrates and syrups used to produce nonalcoholic beverages.
PepsiCo is the leading global food, snack and beverage company.
B) The Coca-Cola Company has a larger share of consumption, while PepsiCo have a larger share of liquid refreshment beverages consumption.
C) The Coca-Cola Company-Inventories are valued at the lower of cost or market. We determine cost on the basis of the average cost or first-in, first-out methods.
PepsiCo’s raw ...view middle of the document...
The new accounting guidance continues the movement toward the greater use of fair value in financial reporting and increased transparency through expanded disclosures. The new accounting guidance changes how business acquisitions are accounted for and will impact financial statements both on the acquisition date and in subsequent periods. Additionally, under the new guidance, transaction costs are expensed rather than capitalized. Future adjustments made to valuation allowances on deferred taxes and acquired tax contingencies associated with acquisitions that closed prior to the beginning of our 2009 fiscal year apply the new provisions and will be evaluated based on the outcome of these matters.
PepsiCo adopted the provisions of the new guidance as of the beginning of our 2009 fiscal year, and the adoption did not have a material impact on our financial statements.
The Coca-Cola Company deconsolidated certain entities as a result of this change in accounting policy. These entities are primarily bottling operations and had previously been consolidated due to certain loan guarantees and/or other financial support given by the Company. These financial arrangements, although not significant to our consolidated financial statements, resulted in a disproportionate relationship between our voting interests in these entities and our exposure to the economic risks and potential rewards of the entities.