Question

Select a publicly traded company and access its most recent financial statements from its annual report. Include the name of the company in your subject line, and do not choose a company about which one of your classmates has already posted. Examine the income statement for that company, and explain the presentation format in the report.

Here is an example:

iRobot Corp

I chose iRobot Corporation as the company to review for this discussion question. This is a corporation that created the Roomba Robot Vacuum and their goal is "design and build robots that empower people to do more both inside and outside the home." (iRobot, 2019) While reviewing their financial results, I found that they used a consolidated statement of income which had a few additional areas of detail provided. The beginning of the income statement looked as expected but then it also broke out net income per share, basic and diluted as well as provided the transparency of the number of shares used in these calculations. This statement for iRobot also included the stock based compensation per expense category.

The consolidated statement of income also shows multiple time periods. It shows a 3 month time period ending towards the end of September as well as the 9 month time period. Not only does it show the current time frame for these periods but also the prior period which supports FASB codification 2015-10-45-2 "In any one year it is ordinarily desirable that the statement of financial position, the income statement, and the statement of changes in equity be presented for one or more preceding years, as well as for the current year."

This company's financial statements have been one of the easier ones for me to review and the summary provided a good insight into the results.

Answer 1

I chose Qualcomm Corporation as the company to review for this discussion question. This is a corporation that creates the Software for the Android mobile phones,tablets & smart laptops and their goal is "From the lofty heights of dreams, we can see the future. Each day, your vision of what tomorrow might hold inspires us. Each day, we work to bring that vision to life as we lay the foundation for a new world of wireless communication. So while no one can be absolutely certain what tomorrow will bring, we have a pretty good idea. After all, with your help, we’re building it." While reviewing their financial results, I found that they used a consolidated statement of income which had detailed reports. From the beginning of the statement the industry wide practice of adopting standard formats were evident, i.e.to report Sales,revenue,gross income and ending the report with details of EPS(basic & Diluted Both) & EBITDA. The statement is also showing current and deferred tax expense for both domestic as well as foreign.

The company had made the statement for 5 financial years along with showing of trends simultaneously in graphical form which is much required for multiple transparency standards and quite useful for the users of the financial statements.The fiscal year followed was from October - September. The company has showed the nil preferred dividends which depicts that it has not any preference shares since five years.The growing interest expense trend also shows the dependence of the company on the external source of finance

Looking into Income statement of this company provides a great insight to the accounts and was really handy for me as it is easily accessible to public.