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- W1592455870 abstract "CASE DESCRIPTION The primary goal of this case is to have students recognize the impact that the use of a different set of generally accepted accounting principles (GAAP) may have on the analysis of an international company's financial statements. Another goal of the case is to reinforce to students that in order to make sound judgments when evaluating the performance of any corporation that the financial information analyzed needs to be prepared on a consistent basis. This case has a difficulty level of three to five and is targeted for use by accounting or finance students in any of the following: 1.) the last course of the intermediate accounting sequence; 2.) a senior level international accounting course, 3.) an undergraduate or graduate level financial statement analysis course or 4) a graduate level financial accounting course. One hour of class time should be sufficient to handle the case discussion and students should budget 1-3 hours of time for the preparation of case responses. CASE SYNOPSIS Recently graduated from college you are hired as a Financial Analyst. Your first task is to evaluate FEMSA, the largest beverage company in Latin America, as a potential investment for your firm. Browsing through FEMSA's Annual Report you note that the company produces and bottles several well known brands of beer and soft drinks such as Carta Blanca, Tecate, Sol, Dos Equis, Coca-Cola, Sprite, Fanta, Fresca, and Power Ade. You discover almost immediately that the financial statements have been prepared in accordance with Mexican GAAP, not the US GAAP that you learned in college and are familiar with. Furthermore, the major financial statements have been issued in constant Mexican pesos for comparative purposes with a translated US dollar amount for the most recent year. Thus, you have a challenging task ahead of you. Do you analyze the financial statements prepared under Mexican GAAP and in constant Mexican pesos? Or do you analyze the financial statements prepared under Mexican GAAP but using US dollars? If so, you don't have the comparative financial information. Is the information available for you to analyze FEMSA's financial statements based upon US GAAP? Does it matter which financial statements that you use or which currency? INTRODUCTION Having recently graduated with a bachelor's degree in accounting you have been hired by a mutual fund as a Financial Analyst. As a staff analyst your job is to perform an analysis on investment candidates. Natu Wurrie, your supervisor, has asked you to prepare an analysis on a company called FEMSA. Naturally, you immediately obtain a copy of the company's most recent annual report for the year ending December 31, 2007. After browsing through the MDA it also exports beer to over 70 countries worldwide. FEMSA Comercio operates Oxxo, the largest convenience-store chain in Mexico with more than 5,500 stores strategically located throughout the country's most important metropolitan areas. …" @default.
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- W1592455870 date "2011-01-01" @default.
- W1592455870 modified "2023-09-24" @default.
- W1592455870 title "FEMSA 2007: The Financial Statement Analysis Impact of Differences in Mexican and US GAAP" @default.
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