Choosing Business-Segment Disclosures
What factors are considered when a firm chooses segmental information disclosures? Consider the article “Cola Wars: Going Global” (Cespedes, 2009). Next, using outside sources that you may seek and your professional experience, develop and write a 3- to 4-page paper concisely answering the following questions:
Q1. If you were an accountant for Pepsi, what specifically would be the relevant accounting research question with respect to choosing business-segment disclosures in view of its global competition with Coca-Cola?
Q2. What accounting standards must Pepsi consider when answering the question?
Q3. What must be known, estimated, and assumed to answer the research question?
Q4. What level of business-segment disclosure would you recommend to Pepsi given your research? Outline the basis of your recommendation.