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How Many Years Of Comparative Income Statements Are Presented In The 10-Q

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1. Income Statement a. Does your company present a single-step or multi-step statement of net income? Pfizer presents their statement of net income in a single-step format (Annual Reports, p. 69). b. How many years of comparative income statements does the company present? Pfizer presents three years which are 2014, 2015, and 2016 currently (Annual Reports, p. 69). c. How many years of comparative income statements are presented in the 10-Q? In Pfizer’s 10-Q, they present 2 years of comparative income which are October 2, 2016, and October 1, 2017. Pfizer also indicates the three month ended and six month ended for the two years (Pfizer Inc Form 10-Q, 2017, p. 5-6). d. Identify the line item(s) in the company’s statement of net income …show more content…

69). These are all permanent earnings because they will be continued in the future. For example, as long as the company is operating, it will have continued revenues and costs associated with selling their products and expenses that are linked to the everyday functions of the company. Pfizer will also need to continue to have research and development expenses so they can remain a leading pharmaceutical company by developing new medical advances. e. Identify the line item(s) in the company’s statement of net income that you think reflect transitory earnings. The line item that I believe reflect transitory earnings is the discontinued operations listed in Pfizer’s statement of income (Annual Reports, p. 69). This would reflect transitory earnings because it is unlikely that Pfizer will continue to have this item in the future. Being a pharmaceutical company they may discontinue drug lines after patents are up on those drugs, but this will not always be the …show more content…

Effective date January 1, 2020 (Pending) In June 2016, they updated the guidance for accounting for credit losses of financial instruments. Lastly, in January 2017 the FASB issued new guidance on goodwill impairment testing. All of these pending standards or early application of these standards brought out by the FASB are being assessed by Pfizer to see the impact that they will have on the firm’s financial statements. All of the above date is found in the annual reports (Annual Reports, p.59-60). 6. According to a recent New York Times article by Amie Tsang, Pfizer is considering spinning off or selling their consumer health unit. This portion of their business is worth $3-4 billion in 2016 or 6 percent of their overall revenues. Some of the items that Pfizer makes in their consumer health unit are Advil, Centrum supplements, and chapstick. The decision to proceed with one of these ideas will come next year (Tsang,

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