A) The Coca-Cola Company is the world’s leading owner and marketer of nonalcoholic beverage brands and the world’s largest manufacturer, distributor and marketer of concentrates and syrups used to produce nonalcoholic beverages.
PepsiCo is the leading global food, snack and beverage company.
B) The Coca-Cola Company has a larger share of consumption, while PepsiCo have a larger share of liquid refreshment beverages consumption.
C) The Coca-Cola Company-Inventories are valued at the lower of cost or market. We determine cost on the basis of the average cost or first-in, first-out methods.
PepsiCo’s raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw material handling facilities are included in cost of sales.
D) The Financial Accounting Standards Board (FASB) amended its guidance on accounting for business combinations to improve, simplify and converge internationally the accounting for business combinations. The new accounting guidance continues the movement toward the greater use of fair value in financial reporting and increased transparency through expanded disclosures. The new accounting guidance changes how business acquisitions are accounted for and will impact financial statements both on the acquisition date and in subsequent periods. Additionally, under the new guidance, transaction costs are expensed rather than capitalized. Future adjustments made to valuation allowances on deferred taxes and acquired tax contingencies associated with acquisitions that closed prior to the beginning of our 2009 fiscal year apply the new provisions and will be evaluated based on the outcome of these matters.
PepsiCo adopted the provisions of the new guidance as of the beginning of our 2009 fiscal year, and the adoption did not have a material impact on our