Question: FINANCIAL REPORTING
Financial Reporting Problem
The Procter & Gamble Company (P&G
The financial statements of P&G are presented in Appendix 5B. The company's complete annual report, including the notes to the financial statements, can be accessed at the book's companion website, www. wiley.com/college/kieso.
Instructions: Refer to P&G's financial statements and the accompanying notes to answer the following questions.
(a) What amounts relative to income taxes does P&G report in its:
(1) 2011 income statement?
(2) June 30, 2011, balance sheet?
(3) 2011 statement of cash flows?
(b) P&G's income taxes in 2009, 2010, and 2011 were computed at what effective tax rates? (See the notes to the financial statements.)
(c) How much of P&G's 2011 total income taxes was current tax expense, and how much was deferred tax expense?
(d) What did P&G report as the significant components (the details) of its June 30, 2011, deferred tax assets and liabilities?