Accounting System and Processes PowerPoint Presentation 2022

ACCOUNTING SYSTEMS
AND PROCESSES
Accounting for Non-Current
Assets of Coca-Cola

OVEREVIEW OF COCA
COLA

COMPANY OVERVIEW
 Coca-Cola Amatil is one of the Asia-Pacific’s largest bottlers and
distributors of non-alcoholic and non-alcoholic beverages.
 Coca-Cola Amatil has an employee base of around 12,000
 It has its presence in Australia, New Zealand, Indonesia, Papua New
Guinea, Fiji and Samoa.
 The company work together across a diversified group of
businesses with the help of its world-class manufacturing as well as
sales capabilities

VISION AND VALUES
VISION – To provide the customers with exceptional portfolio of brands while
sharing values and ensuring growth of the customers. In the community, the
vision is to make positive contribution while creating value for the Partners. For
the shareholders, the vision is to ensure attractive sustainable return.
VALUES – Coca-Cola has three simple values that drives their success; they are
as follows:
o To be straightforward and open
o To take initiative and own the outcome
o To focus on today and tomorrow

STRATEGY
Coca-Cola Amatil has a strategy that is defined by thee pillars. They
are as follows:
1. LEAD – The strategic initiative is to ensure strengthen the
category leadership position
2. EXECUTE – The strategy is to bring change in productivity and in-
market execution
3. PARTNER – The strategy is to align with The Coca-Cola Company
and other partners

BRANDS
Coca-Cola Amatil has brands under certain specific categories of products. They are as follows:
SPARKLING – NON ALCOHOLIC – Coca-Cola, Diet Coca-Cola, Sprite, Fanta, Lift, Kirks,
Cascade, Deep Spring and others.
STILL – NON ALCOHOLIC –Barista Bros, Pump, Fruit Box, Zico, Fruity Drink, Fizetea, Mojo and
others.
ENERGY – Mother and Monster.
ALCOHOL – Teacher’s, Bowmore, Ardmore, Kilbeggan, Jim Beam, Knob Creek, Maker’s Mark and
others.
HOT BEVERAGES –Grinders, Fix Coffee and Simpli Ci Tea, Temple others.
EQUIPMENT – Coke Vending and Neverfail.

SUSTAINABILITY
Coca-Cola Amatil is strongly committed towards positively and distinctly contribute to
the world. The company has four pillars of sustainability. They are as follows:
PEOPLE – Undertaken initiatives are in the areas of heath, safety and wellbeing and
diversity and inclusion.
WELLBEING – The adopted strategies are Responsible Marketing Policy, Five Pillar
Approach and others.
ENVIRONMENT – The considered areas are water, responsible souring, energy and
climate and others.
COMMUNITY – The initiatives are product donations, volunteering, disaster relief,
Brand-led charity and others.

ACCOUNTING FOR NON-
CURRENT ASSETS

NON-CURRENT ASSETS
Coca-Cola Amatil has reported eight types of non-current assets in the 2018 Annual Report. They
are mentioned below:
1. Property, Plant and Equipment
2. Intangible Assets
3. Investments
4. Defined Benefit Superannuation Plans
5. Derivatives
6. Other Receivables
7. Prepayments
8. Loan Receivable Interest-Bearing

PROPERTY, PLANT AND
EQUIPMENT
Property, Plant and
Equipment in Coca
Cola Amatil includes
Freehold and
leasehold land,
Freehold and
leasehold buildings,
Plant and Equipment
and Property, plant
and equipment under
construction.

PROPERTY, PLANT AND
EQUIPMENT
Recognition and Measurement – Coca-Cola Amatil has stated the property, plant
and equipment at cost less impairment and accumulated depreciation. For the purpose
of depreciation, the useful lives of freehold and leasehold buildings and plant and
equipment are 20 to 50 years and 3 to 15 years respectively. Straight-line method has
been adopted for the purpose of depreciation.
Impairment – In accordance with the principles of impairment, the items of property,
plant and equipment are tested for impairment. An impairment loss is recognized when
there is any indication of impairment.
Key Estimates – Historical experience has been considered for estimation of useful
lives of assets. In addition, the assessment of assets’ condition is done on annual basis.

INTANGIBLE ASSETS
Intangible assets of
Coca-Cola Amatil
Includes Brand
names and
trademarks,
Investments in
bottlers’ agreement,
Goodwill, Software
development and
other assets and
Others.

INTANGIBLE ASSETS
Recognition and Measurement – Intangible assets with both definite and indefinite
lives expect goodwill are recognized at fair value at the acquisition date. Coca Cola
Amatil considers goodwill as the excess of business acquisition cost over the acquired
assets’ fair value. Goodwill is not subject to amortization, but it is subject to
impairment.
Impairment – The company tests their intangible assets for impairment on annual
basis based on the polices and procedures of impairment. In case there is any
indication of impairment, impairment loss is recognized.
Key Estimates – The company has estimated the useful lives of the intangible assets
on the basis of historical experience and the expected period of future consumptions.

INVESTMENTS
In Cocal Cola Amatil, Investment includes Investment accounted
using equity method and other investments.
Recognition and Measurement – The company has considered
these investments through using the equity method and their initial
recognition has been done at cost. It is needed for the company to
recognize the profits or losses from these investments in the income
statement..

DEFINED BENEFIT
SUPERANNUATION PLANS
Coca Cola Amatil has two types of defined benefit plans; they are as
follows:
1. Coca-Cola Amatil Superannuation Plan (“CCASP”) based in Australia, and
2. CCBI Superannuation Plan (“CCBISP”) based in Indonesia.
Coca Cola Amatil has recognized the current as well as adjusted period
related service costs related to these defined benefit surplus plan as they
accrue. The company recognizes the interests in the income statement for
implies returns on the plan assets.

DERIVATIVES
It can be seen from the 2018 Annual Report of Coca Cola Amatil that the
company has two types of derivatives; they are as follows:
1. Debt related derivatives
2. Non-debt related Derivatives
The company uses the derivative financial instruments in order to manage the
exposure of certain financial risks. These derivatives are recognized at fair
value; and they are subject to revaluation. In addition, the company hedges
these derivatives either at fair value of certain liabilities or in the associated
cash flows with the assets and liabilities.

LOAN RECEIVABLE INTEREST
BEARING
In Cocal Cola Amatil, borrowings
include both the current and
non-current borrowings. The
initial recognition of borrowings
is done at fair value at the date
of settlement at the amortized
cost with the use of effective
interest rate method and net of
associated transaction costs.
The de-recognition of
borrowings is done at time of
discharging the obligation.

From the whole discussion, the follow points can be considered:
 Coca Cola has considered the cost method for the reporting of their non-
current assets.
 The company has also used fair value for the initial recognition of the non-
current assets.
 Non-current assets like property, plant and equipment and intangible assets
are subject to impairment.
 Historical experience is considered for the determination of the useful lives
of the non-current assets.

REFERENCES AND
BIBLIOGRAPHY
Ccamatil.com. 2019. [online] Available at:
https://www.ccamatil.com/-/media/Cca/Corporate/Files/Annual-Reports/2019/2018-
Annual-Report.ashx [Accessed 28 Jul. 2019].
Ccamatil.com. 2019. Our Company – Coca Cola Amatil. [online] Available at:
https://www.ccamatil.com/our-company [Accessed 28 Jul. 2019].
Ccamatil.com. 2019. Our Vision and Values – Coca Cola Amatil. [online] Available at:
https://www.ccamatil.com/our-company/our-vision-and-values [Accessed 28 Jul. 2019].
Ccamatil.com. 2019. Our Strategy – Coca Cola Amatil. [online] Available at:
https://www.ccamatil.com/our-company/our-strategy [Accessed 28 Jul. 2019].
Ccamatil.com. 2019. Our Businesses – Coca Cola Amatil. [online] Available at:
https://www.ccamatil.com/our-businesses-and-brands/our-businesses [Accessed 28 Jul.
2019].
Ccamatil.com. 2019. Our Brands – Coca Cola Amatil. [online] Available at:
https://www.ccamatil.com/our-businesses-and-brands/our-brands [Accessed 28 Jul. 2019].