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· Any modification in the registrant's interior controller over economic recording that happened during the maximum current economic quarter has importantly exaggerated or is sensibly likely to disturb substantially.

FASB Code for NCI

Non-Controlling Interests (NCI) are owned through an organization that doesn't offer the number one manipulation to the shareholder. GAAP issued ARF 51, as the publication mentioned the consolidation of monetary statements. It needs the losses revealed out of the non-regulated interest and are also applied to the reporting entity. GAAP changed the previous statement and needs transparent net revenue accounting for non-regulated interest. Statement 160 was codified as ARF 810; it particularizes the procedures and rules of financial and accounting reporting of non-regulating interest (Gordon, 2019). Comment by Jeremy Yoo: in FASB's own words, was that "GAAP had no reasonable bookkeeping and detailing direction for the noncontrolling enthusiasm for a backup" (Statement no. 160, section B6).

Most of the investors' positions are counted as few because their balloting rights now no longer exceed the whole quantity of stocks. For many indexed companies, the quantity of remarkable shares is a not unusual place shareholders cannot critically affect first-degree decisions, which can be considered non-controlling hobbies. Usually, the party manages between 6 and 11 percent of voters casting stocks that can be decided using the board chair. The corporation, as said, realizes the small hobby inside the belongings of the determined organization; break free of their belongings. Comment by Jeremy Yoo: In this section, I need to list specific requirements/ rules about segment and NCI and its number. Also, the requirement/rule’s history and development. Do not need those paragraphs.

Organizations want to document inside the non-controlling hobby considering such facts are essential to shareholders' ability. Companies with super advantages managed with the aid of using people are likely to be volatile compared to the organization or a subsidiary whose extensive shareholders are controlled through the organization. Non-controlling hobbies, additionally known as minority interests, are recorded inside the equity phase of the consolidated stability sheet.

C. Comment by Jeremy Yoo: I could see Costco’s reportable segment is US operation, Canada operation, and other international operation. And NCI could be found its balance sheet.

The organization commenced by mentioning its year of incorporation, which estimates the number of years it has been in operation since 1946. It has as nicely noted the co-founders of the organization. It has systematically given a breakdown concerning its product, and every year, a sure product was added to the marketplace from 1968 until 2015 (Chen, 2021, p3, para 3). The organization has nicely disclosed the beyond five years of economic records on decided records on Item quantity six, which offers an ancient economic evaluation of its growth. Comment by Jeremy Yoo: In the Section C, I need to summarize what did Costco disclosed about reportable segments and NCI in SEC 10-K that issued 2022. Do not need this para.

Costco has evolved through the years and has made massive steps in the variety of merchandise and resources for its clientele. The marketplace commenced as one specializing in ladies ordinarily; however, it presently carries guys' merchandise nicely. Since its incorporation, there are new techniques to discover even a broader marketplace that is keenly found through its unfolded wings to attain hundreds for product attention through social media and different channels. The organization has its merchandise utilized in a hundred and fifty nations, which has grown sincerely through the years of business (COSTCO, 2022, p.41. para. 4). Comment by Jeremy Yoo: In the Section C, I need to summarize what did Costco disclosed about reportable segments and NCI in SEC 10-K that issued 2022. Do not need these sentences. Comment by Jeremy Yoo: I don’t see any sentences related to this sentence in page 49. Para. 4.

D.

Costco has typically disclosed the essential subjects as required through the regulation. The economic evaluation is extensive and complete and offers sufficient statistics to the general public to make knowledgeable selections concerning funding for the fascinated events and the government. The funding selections may be knowledgeable given the employer's extensive and all-inclusive risks that would affect the employer's enterprise (Tien et al., 2019). The requirement to offer audited economic reviews complied with and was in step with KPMG; the employer turned straightforward in its economic disclosure and accounting practices. The dangers are predicted to vary among people who have problems with policies, reviews, customers, competitors, gradual traps, marketplace trends, new acquisitions, and overseas dealings. The employer's administrators were indexed as required with the aid of using the same old disclosure. Comment by Jeremy Yoo: Write your thoughts Relating to ONLY segment and NCI disclosures that Costco disclosed in their SEC 10-K. For example, Is Costco reporting its segments and NCI based on regulation and/or rules? Discuss good part and bad part. Something like that Comment by Jeremy Yoo: Do not talk anything not related to reportable segment and NCI

Costco has disclosed all of the important statistics, and its nation of operation may be properly derived given the auditor's file of equity and compliance of economic statements. The employer disclosed its prison status, which offers the overall public a view of the employer's adherence to the regulation and has an instantaneous impact on its reputation (Napier &Stadler, 2020). The cautionary observation furnished the practical disclosure to reconcile each employer's expectancies and dangers and the losses probably incurred because of each inner and outside element. Internal elements include restructuring and new acquisitions, even as outside elements vary from the remarkable competition, new policies, laws, political subjects, and social and financial dangers. Changes in overseas forex fluctuations because of various financial conditions at the invested one hundred fifty international locations will affect the enterprise both undoubtedly and negatively. This consequently conclusively shades mild to all people with the hobby of this employer and informs them comprehensively on each's capability and in all likelihood the motive of fall. Costco Inc. FORM 10-K consequently is compliant with the policies on which it is primarily based and meets the purpose of its number one objective. Comment by Jeremy Yoo: Write your thoughts Relating to ONLY segment and NCI disclosures that Costco disclosed in their SEC 10-K. Do not need this para. Comment by Jeremy Yoo: I don’t get it Comment by Jeremy Yoo: Do not write overall stuff.

Conclusion

It is concluded that segment and non-controlling interest disclosure is crucial for financial statement consumers. The Costco warehouse corporation has included these disclosures in its financial statements to help an investor make an informed judgment. The inclusion of non-controlling interests in the consolidated statement of equity, for example, provides any potential investor with basic information about the company. Significantly, the release of this information has significant implications for Costco's warehousing firm and potential stockholders. The disclosure of segmental and non-controlling interests has been made per international accounting standards, making the report reliable and viable (COSTCO, 2022, p.30. para. 1). Comment by Jeremy Yoo: Why? Please write reasons. Comment by Jeremy Yoo: Specify like reportable segments and NCI disclosure Comment by Jeremy Yoo: How it can help investors? Comment by Jeremy Yoo: What kind of information? And how the provided information can help potential investors? Comment by Jeremy Yoo: Again, what kind of implications influence potential investor? Comment by Jeremy Yoo: I don’t see any sentences related to this sentence from page 30.

References

COSTCO. (2022). UNITED STATES SECURITIES AND EXCHANGE COMMISSION. Retrieved from COSTCO.

Chen, J. (2021). Marketing strategy management of Costco: Analysis and comparison to S-Group.

Gordon, M. (2019). Issues with Public Disclosure of Non-GAAP Financial Metrics. Available at SSRN 3405661.

Napier, C. J., & Stadler, C. (2020). The real effects of a new accounting standard: the case of IFRS 15 Revenue from Contracts with Customers. Accounting and Business Research, 50(5), 474-503.

Tien, N. H., Thuong, T. M., & Yen, N. T. H. (2019). Enhancing independence of local auditing services by profiting from experiences of the Big4 group (KPMG, Deloitte, PWC E&Y) operating in the Vietnam market. Cogent Business & Management.

Zeff, S. A. (2018). The omnipresent influence of the SEC in the work of the Accounting Principles Board, 1959–1973. Journal of Accounting and Public Policy, 37(3), 254-263.

SAMPLE PAPER

Walgreens Pharmacy Company Analysis

A. Introduction

The company was founded in 1901 by Charles R. Walgreen and started out as just a small neighborhood drug store. By 1925 Walgreen had more than 65 stores and had expanded to Milwaukee, St Louis and Minneapolis. He took the company stock public two years later, and at the time of the Great Depression Walgreens had more than 500 stores from New York to Florida. By 1975, Walgreens reached $1 billion in sales. Over the years Walgreens continued to acquire multiple drugstore chains and even the online retailer drugstore.com. In 2014, Walgreens took its products and services to the four corners of the world with the completion of its merger with Alliance Boots, a leading international pharmacy-led health and beauty group. Alliance Boots was also the largest pharmaceutical wholesaler in the UK through its Alliance Healthcare (Distribution) Ltd business. The company employed over 120,000 staff and operates more than 4,600 retail stores, of which just over 4,450 have pharmacies. Alliance Boots pharmaceutical wholesale division serves over 180,000 pharmacies, doctors, hospitals and health centers from over 370 distribution centers in 20 countries. [www] Walgreens bought a 45 percent stake in Alliance Boots, which runs the United Kingdom's largest pharmacy chain, in 2012 for about $6.7 billion in cash and stock. The company said in August that it would buy the remaining stake for roughly $16 billion in additional cash and stock. [Ass]With the completion of the merger comes the formation of a new global company, Walgreens Boots Alliance, combining two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years each. After the merger with Boots Alliance, the company now trades under the symbol WBA. The company is now the second largest pharmacy store chain in the United States, with 9,800 operating stores.

B. NCI & Segments

International Accounting Standard 27 (IAS 27) defines non-controlling interest as “the equity in a subsidiary not attributable, directly or indirectly, to a parent”. The similar term "minority interest" was previously used in standards. Non-controlling interest (NCI) is ownership of a company which does not give the shareholder the control of the company. The control means that the investor can govern the financial and operating policies of its subsidiaries to gain benefits from the operations of subsidiary. Usually the control can be gained if more than 50% of the voting rights are acquired by a party. This means that any position that holds less than 50% of the outstanding voting rights is deemed to be a non-controlling interest. [htt] In December 2007, FASB adopted two new business combination standards: Statement no. 141(R), Business Combinations, and Statement no. 160, Noncontrolling Interests in Consolidated Financial Statement [Pau]. Both culminated years of work directed at improving reporting for consolidated entities. The most unmistakable advancement in Statement no. 160 is the name change from "minority enthusiasm" to "noncontrolling interest." The issue with the old wording was that it didn't include the full scope of mix situations. Some greater part possession positions don't prompt solidification, for example, when a backup is in liquidation. Alternately, under Interpretation no. 46(R), Consolidation of Variable Interest Entities, a parent with a minority holding in another element may have adequate control to require combination if it is regarded to be the essential recipient of the auxiliary's exercises. On Sept. 15, FASB issued a presentation draft proposing modification to Interpretation no. 46(R). In addition to other things, the proposition requires performing new subjective investigation while deciding whether a money related enthusiasm for a VIE is to be combined. An article in the June 2008 issue of the Journal of Accountancy, described nine major changes created by Statement no. 141(R). This article summarizes the most important changes created by Statement no. 160, which is effective for fiscal years beginning after Dec. 15, 2008. [Pau1]. The outcome, in FASB's own words, was that "GAAP had no reasonable bookkeeping and detailing direction for the noncontrolling enthusiasm for a backup" (Statement no. 160, section B6). This absence of direction prompted a conflicting idea of NCI that, thusly, made differing and inefficient announcing. The accompanying areas depict a portion of these issues and the related arrangements in the new standard that are planned to beat them. Statement no. 141(R) and Statement no. 160 are integrally linked to work together to apply the new acquisition method to consolidated financial statements and reports and thus bring more useful information to the capital markets. With its more extensive and consistent fair value measurements, Statement no. 141(R) will help users assess the future cash flows of the consolidated enterprise. And with its consistent application of entity reporting concepts, Statement no. 160 will help them comprehend the relationship between the controlling and noncontrolling interests. As a result, users can perform more complete and reliable assessments of the prospective future cash flows available to the parent and its shareholders. [Pau] Reportable segments are operating segments that report any revenues of at least 10% of total revenues, Profit or loss of at least 10% of the combined profit or loss and assets of at least 10% of the combined revenues. A reportable segment may aggregate two or more operating segments if their products and services, production processes, type of customer, distribution, and regulatory environments are similar. Reportable segments must total at least 75% of external revenues; if not, additional segments must be reported until that threshold is reached. In June 1997, the FASB issued SFAS 131, revising SFAS 14 standards for reporting information about operating segments. The FASB and the Accounting Standards Board (AcSB) of the Canadian Institute of Chartered Accountants (CICA) collaborated on this project and reached the same conclusions. The IASC, which had also been working on a revision of IAS 14, reached somewhat different conclusions despite identical stated objectives. The exposure drafts for these standards are discussed in The Analysis and Use of Financial Statements (AUFS) Box 13-4, pages 717-718. Both final standards reduced the disclosure requirements proposed in the EDs. [FAS]

C. Walgreens Reporting

Like a lot of companies, Walgreens produces quarterly reports and an annual report to keep its shareholders abreast of its financial position. Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity. Located on page 37 of Walgreens most recent annual report you can find a five- year Summary of selected Consolidated Financial Data. Net Earnings from Non-Controlling Interests for the year 2017 was 23 Million, a 75 Million dollar decrease since 2014.[Wal]

D. Thoughts

Through this paper I have learned how to deeply analyze financial statement. By working with a 10-K, I was able to become very familiar with financial statement formats and how to understand them. Even though I work with a company that produces annuals and quarterly’s, I didn’t fully read them until I had to do a project on a 10-k. I must say a lot of work goes into these reports and am proud to be a part of writing the financials. This assignment helped me better understanding of just what I write. I always say, I just write a small section I don’t’ understand them. I was also able to learn how to value stock models using two different methods as well as learn how to do advanced ratio analysis. More practical skills such as formulas in Excel were also acquired through this assignment. This familiarity with financial statements, and an exposure to all aspects of Walgreens, and companies in general will greatly help going forward with my career in accounting.