International Accounting Study Material with Solved Assignments and Essays

This text provides information on International Accounting, including consolidated income statements, resources employed, and retained earnings. It also offers insights into the desired accounting equation and factors that impact changes in equity.

INTERNATIONAL ACCOUNTING 1
INTERNATIONAL
ACCOUNTING

INTERNATIONAL ACCOUNTING 2
Answer 1:
The following table shows the consolidated income statement for the company:
(Amounts in
millions in CHF)
Particulars 2017 2016
Profit for the year
8,883.0
0
9,467.0
0
Currency retranslations, net of taxes
1,033.0
0
-
3,771.00
Fair value adjustments on available for
sale securities, net of taxes
16.0
0
-
144.00
0.8
9
Fair value adjustments on cash flow
hedges, net of taxes
-
1.00
62.0
0
Share of other comprehensive incomes
of associates and joint ventures
-
154.00
165.0
0
Items that are or may be reclassified
subsequently to the income statement
894.0
0
-
3,688.00
Re-measurement of defined benefit
plans, net of taxes
-
143.00
-
362.00
Share of other comprehensive income of
associates and joint ventures
-
10.00
112.0
0

INTERNATIONAL ACCOUNTING 3
Items that may never be reclassified
in the income of associates or joint
ventures
-
153.00
-
250.00
Other comprehensive income for the
year
9,624.0
0
5,529.0
0
From the above, I would choose the fair value adjustments on the available for sale securities,
net of taxes. This is because these are the investments that are purchased by the company for
investment purposes. These are the securities that could be sold by the company at any point
of time. This just means that the company would earn a gain or loss if it goes into the market
and sells this investment or the security.
The stated item has undergone a change to the tune of 89%. This merely means that during
the year of 2015, the company had earned a loss on its securities which could be due to the
decrease in the value of that’s security and in the eyar 2016, the company ahs earned an
unrelaised gain on those securities or invetsments.
Answer 4:
The following table shows the resources employed by the company:
(Amounts in millions in
CHF)
Particulars 2017 2016
Total Current Assets 32,042.0 29,434.0

INTERNATIONAL ACCOUNTING 4
0 0
Total Non-current assets
99,859.0
0
94,558.0
0
Total assets
1,31,901.0
0
1,23,992.0
0
Current liabilities
37,517.0
0
33,321.0
0
Total non-current
liabilities
28,403.0
0
26,685.0
0
Shareholders equity
65,981.0
0
63,988.0
0
Total liabilities and
shareholders equity
1,31,901.0
0
1,23,994.0
0
The company has employed the total resources of an amount of CHF 131901 million.
The following is the desired accounting equation:
Assets
Equal
s
Shareholde
rs equity Plus
Liabiliti
es
1,31,901.0 65,981.00 65,920.0

INTERNATIONAL ACCOUNTING 5
0 0
1,31,901.0
0 1,31,901.00
Answer 5:
The following statement shows the retained earnings section of the statement of changes in
equity:
(Amounts in millions
in CHF)
Particulars 2017 2016
Retained
earnings
82,870.0
0
88,014.0
0 5.84%
The amounts as on December 31, 2017 were CHF 82,870 while the same as on December 31,
2016 were CHF 88,014.
The change is mainly due to the following factors:
 Profit for the year
 Other comprehensive income for the year
 Dividends

INTERNATIONAL ACCOUNTING 6
 Movement of treasury shares
 Equity compensation plans
 Changes in non-controlling interests
 Reduction in the amount of the share capital.
As could be seen from the above table, the change is to the tune of 5.84%.
As could be seen from the statement, the amount of the dividend paid during the eyar 2016
were CHF6,937 million.
This could be cross checked from statement of cash flows, cash flows from financing
activities.
The amounts are dividend paid to shareholders of the parent were CHF6937 million and to
the non-controlling interest were CHF432 million (Nestle, 2016).

INTERNATIONAL ACCOUNTING 7
References:
Annual report 2016. (2018). Retrieved from
https://www.nestle.com/asset-library/documents/library/documents/financial_statements/
2016-financial-statements-en.pdf