Financial Accounting
For Merck, the company is based in the U.S. And uses the U.S. generally accepted accounting principles (GAAP) to compile its financial statements.
Novartis is based in Switzerland, and it uses international financial reporting standards (IFRS) to prepare its financial statements. It is allowed to use this as foreign firm, even though it has a cross-listing on the New York Stock Exchange, but it files a different form, the 20-C, to recognize that is a foreign entity with foreign accounting practices.
The external auditors for Merck are Price Waterhouse Coopers. They certify that they have followed the standards set by the Public Companies Accounting Oversight Board. They also followed the internal control integrated framework of COSO. The auditor for Novartis is also Price Waterhouse Coopers. They used the criteria of the internal control integrative framework from COSO and the standards of the Public Companies Accounting Oversight Board.
It is interesting to see that both of these auditors are the same company and that they use the same auditing standards. This can be explained with the cross-listing of Novartis. Because Novartis is listing in the U.S., it is subject to U.S. law, including the Sarbanes-Oxley Act. Indeed, the CEO and...
25 in 1999, $0.24 in 2000 and $0.23 in 2001. This earning is after deducting cost of sales and operating expenses. The following were the cash flows from 3 activities of Merck and ICN (figures were in dollars): Cash inflow (outflow) Merck & Co., Inc. ICN Pharmaceutical Inc. From operating activities 6.1B 7. 7B 9.1B 87.1M From Investing activities 2.8B) 3.6B) 4.3B) 50.36M) 90.08M 119M) From Financing activities 3.9B) 3.4B) 5.1B) 36.4M Operating cash flow is the cash that the Company generates through running its business. Considering cash flows of both Companies
Merck Novartis Merck and Novartis Financial Statements 2012 Balance Sheet • What components of stockholders' equity do each of the companies disclose? Merck & Co. provides a consolidated statement of stockholders equity on their balance sheet. They disclose the number of shares, share types, retained earnings, and some historical data (Merck & Co., 2013). Novartis provides a much more thorough and detailed report of their shareholders equity in their annual report. Not only do they
Meanwhile, units of production method is computed using the on units of use rather than time. For example, particular machinery is depreciated based on the estimated number of units the Company expected to produce. Both method are more complex compared to straight-line method of depreciation. Considering that cost of an item will not have the same value compared at acquisition, an accounting method is created to realize an asset's valuation
Pfizer can be included in the larger industrial sector of biotechnology and pharmaceuticals, although a great part of its revenues come from the pharmaceutical products for which it is renowned. The pharmaceutical companies have specialized in a vast category of drugs, from simple, aspirin- type drugs, to more complex ones, including drugs that inhibit or activate individual molecules in different selected environments. They also produce vitamins and livestock food supplements. The
Pag). Some business will continue as usual, of course: Abbott's nutrition division, based in Columbus, Ohio and employing approximately 2,000 people, announced that the nutrition unit will "fall under the umbrella of a new medical products company that will retain the Abbott name in a split announced Wednesday" (Rouan n.pag). In addition, the announcement has apparently met with international investor approval: "At the news, Abbott's shares went up 7.3% in
Enron could engage in their derivative trading strategy with no fear of government intervention because derivative trading was specifically exempted from government regulation. Due in part to a ruling by the Commodity Futures Trading Commission's (CFTC) chairwoman, Wendy Graham, derivatives remained free of regulatory oversight. Ms. Graham, wife of Texas senator Phil Graham, made this ruling 5 weeks before resigning as chairwoman of the CFTC and joining the Enron Board
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