Choosing Business-Segment Disclosures
Walden University
ACCT 6140 ACMG 6140: Current Trends in Accounting
Standard
14:24:55 GMT -05:00
, The Financial Accounting Standards Board (FASB) sets the accounting standards for
business segment reporting and requires that all segments are aligned with the company's
reporting structure. It doesn't mean to report all the segments but to report those segments that
made 10% of total profits or total assets (Investopedia). Business segments can be components of
a business that generates its revenue, product, product line, services, and offerings. Coca-Cola
Company's operational structure includes four geographic operating segments: Europe, Middle
East & Africa; Latin America; North America, and the Asia Pacific. They also have other
business segments: Bottling Investment Group (BIG) and Global Ventures (GV).
This paper will consider an article called "Cola Wars: Going Global" (Cespedes, 2009) and
analyses the implications of choosing business segments disclosures for Pepsi given the global
competition with Coca-Cola and answer the following questions:
Looking at the global competition with Coca-Cola, What is the research question one
might ask concerning choosing business disclosures?
Pepsi company uses what accounting standards related to the research question.
In relates to the research question, what must be known, estimated, and assumed?
What would be recommended for business segment disclosure for Pepsi?
Pepsi is one of the biggest soda beverages brands, and its major competitor rival is Coca-Cola.
Both Pepsi and Coca-Cola approach the international market from different positions and
heritages. Coca-cola's global expansion had 75% of the market versus 5% for Pepsi. Pepsi was
struggling financially and expanded beyond the US more slowly than Coke. The relevant
accounting research question is Does business segment disclosure required by SFAS 131 place
Pepsi at a competitive disadvantage as their disclosures might give Coca-Cola the management
insight of their overall global expansion strategy?
14:24:55 GMT -05:00
Walden University
ACCT 6140 ACMG 6140: Current Trends in Accounting
Standard
14:24:55 GMT -05:00
, The Financial Accounting Standards Board (FASB) sets the accounting standards for
business segment reporting and requires that all segments are aligned with the company's
reporting structure. It doesn't mean to report all the segments but to report those segments that
made 10% of total profits or total assets (Investopedia). Business segments can be components of
a business that generates its revenue, product, product line, services, and offerings. Coca-Cola
Company's operational structure includes four geographic operating segments: Europe, Middle
East & Africa; Latin America; North America, and the Asia Pacific. They also have other
business segments: Bottling Investment Group (BIG) and Global Ventures (GV).
This paper will consider an article called "Cola Wars: Going Global" (Cespedes, 2009) and
analyses the implications of choosing business segments disclosures for Pepsi given the global
competition with Coca-Cola and answer the following questions:
Looking at the global competition with Coca-Cola, What is the research question one
might ask concerning choosing business disclosures?
Pepsi company uses what accounting standards related to the research question.
In relates to the research question, what must be known, estimated, and assumed?
What would be recommended for business segment disclosure for Pepsi?
Pepsi is one of the biggest soda beverages brands, and its major competitor rival is Coca-Cola.
Both Pepsi and Coca-Cola approach the international market from different positions and
heritages. Coca-cola's global expansion had 75% of the market versus 5% for Pepsi. Pepsi was
struggling financially and expanded beyond the US more slowly than Coke. The relevant
accounting research question is Does business segment disclosure required by SFAS 131 place
Pepsi at a competitive disadvantage as their disclosures might give Coca-Cola the management
insight of their overall global expansion strategy?
14:24:55 GMT -05:00
