Many companies make annual reports available on their corporate web page, often under an Investors tab. Annual reports also can be accessed through the SEC’s EDGAR system at www.sec.gov (under Filings, click Company Filings Search, type in Company Name, and under Filing Type, search for 10-K).

Access the most recent annual report for a company with which you are familiar to complete the following requirements.

Required

Prepare a one-page report describing your findings for the following:

1. The company’s reported operating segments and whether they are based on product lines, geographic areas, or some other basis.
2. The importance of each operating segment for the company as a whole in terms of revenues, income, and assets.
3. Whether the company provides any enterprise wide disclosures in addition to disclosures related to its operating segments.
4. Whether the company provides disclosures about major customers.

Unless they use IFRS, foreign companies with securities listed in the United States (in the form of ADRs) are required to reconcile their net income and stockholders’ equity to U.S. GAAP in the annual report (Form 20–F) they file with the Securities and Exchange Commission (SEC). Lists of foreign SEC registrants are available on-line at www.sec.gov (under Filing Type, search for 20–F). However, not all foreign registrants file their reports with the SEC electronically. Many non-U.S. companies make annual reports available on their corporate website. Access a recent annual report (Form 20–F) for a foreign company listed on the New York Stock Exchange that does not use IFRS to complete the following requirements.

Required

1. Determine the nationality of the company selected and the accounting rules and regulations it used (company GAAP) to prepare its financial statements.
2. Summarize the major differences in measuring net income between company GAAP and U.S. GAAP.
3. Compare the company’s profitability using company GAAP and U.S. GAAP.