IAS & IFRS

IFRS
International Financial Reporting Standards (IFRS) is a set of accounting standards developed by
an independent, not-for-profit organization called the International Accounting Standards Board
(IASB).

IAS

The international accounting standards (IAS) were an older set of standards stating how
particular types of transactions and other events should be reflected in financial statements. In
the past, international accounting standards were issued by the Board of the International
Accounting Standards Committee (IASC); since 2001, the new set of standards has been known
as the international financial reporting standards (IFRS) and has been issued by the International
Accounting Standards Board (IASB). Although IASC has no authority to require compliance
with its accounting standards, many countries require the financial statements of publicly-traded
companies to be prepared in accordance with IAS.

Difference

IFRS is the current set of standards that is reflective of the changes in the accounting and
business practices over the last two decades. IAS is what used to be prior to the introduction of
IFRS. However, not all of the IAS are outdated. In fact, to date there are only 9 IFRS issued and
the IAS that were not superseded by the IFRS are still in use. The IASB no longer issues IAS.
Any future standards will now be called IFRS, and if they are contradictory to existing IAS, the
IFRS will be followed.

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Company: Coca-Cola
Introduction
For the purpose of this report, we have chosen to analyses the operations of Coco-Cola Bottling
that takes place in Lahore. Operations management is crucial to this company being a huge
multinational that has assembly lines all over the world. We start by presenting a brief overview
of the brand and then move on to the operational analysis of the unit in Lahore.
The Coca-Cola Company, which has its headquarters in Atlanta, Georgia, is an American
multinational beverage corporation, and manufacturer, retailer, and marketer of non-alcoholic
beverage concentrates and syrups. The company is popular for its flagship product Coca-Cola, a
product originally invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.
Today, the Coca-Cola Company has been in business for 125 years, employs 139,600 people, and
sells 1.6 billion beverages each day in more than 200 countries. Coca Cola is a trademark of soft
drink registered in the U.S in 1893. A pharmacist found it in 1886. The name Coca-Cola name
comes from coca leaves and cola fruit, two components of the Coca-Cola drinks. This has to do
with Coca Cola period because people tend island has referred to Asa Candler is the man's drug
world
Coca cola started its operations in Pakistan in 1996; when it took over business operations in
Pakistan & setup its first production plant in Karachi. Now there are 6 production units and 11
distribution units working in Pakistan providing employment to more than 6000 people.
Coca-Cola soon after the country’s independence in 1947 stepped into Pakistan in 1953. Similar
to how Coca-Cola operates in other countries, the Coca-Cola business in Pakistan is a local
business. The beverages are manufactured domestically, providing employment to Pakistani
citizens and the product range and marketing reflects Pakistani tastes and lifestyle. After the
establishment of Coca-Cola, Fanta was introduced in 1965; correspondingly, Sprite in 1972; after
a gap of 30 years Diet Coke and Fanta Lemon were introduced in 2001. Currently, Coca-Cola
beverages are produced and sold in Pakistan via the company’s own bottling plants that operate
under Coca-Cola Beverages Pakistan Ltd. (CCBPL).

While many perceive the Company as merely "Coca-Cola," their system operates through
multiple local channels. The Company produces and sells concentrates, beverage bases and
syrups to bottling operations, owns the brands and is responsible for consumer brand marketing

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initiatives. Their bottling partners manufacture, package, merchandise and distribute the final
branded beverages to their customers and vending partners, who then sell their products to
consumers. All bottling partners work closely with customers -- grocery stores, restaurants, street
vendors, convenience stores, movie theatres and amusement parks, among many others -- to
execute localized strategies developed in partnership with our Company.

Vision of coco-cola Company

“Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.”
 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.
Mission statement
“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.”
 To refresh the world...
 To inspire moments of optimism and happiness...
To create value and make a difference.

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CONDENSED CONSOLIDATED BALANCE SHEETS In 000’s $ $
(USD $)
In Millions 2016 2007

CURRENT ASSETS
Cash and cash equivalents (Note 1) $8,846 $4,701
Marketable securities (Note 2) 279 278
Trade accounts receivable, less allowances of $57 and $51, 3,465 3,090
respectively
Inventories 2,341 2,187
Prepaid expenses and other assets 2,061 1,920
TOTAL CURRENT ASSETS 16,992 12,176
Equity method investments 5,985 5,316
Other investments, principally bottling companies 496 463
Other assets 1,910 1,733
PROPERTY, PLANT AND EQUIPMENT, less 9,099 8,326
accumulated depreciation of $6,674 and $6,074,
respectively
Trademarks with indefinite lives 6,147 6,059
Goodwill 4,100 4,029
Other intangible assets 2,378 2,417
Total assets 47,107 40,519
Current liabilities
Accounts payable and accrued expenses 6,755 6,205
Loans and notes payable 6,136 6,066
Current maturities of long-term debt 50 465
Accrued income taxes 469 252
Total current liabilities 13,410 12,988
Long-term debt 5,028 2,781
Other liabilities 3,124 3,011
Deferred income taxes 1,123 877
The Coca-Cola company shareowners' equity
Common stock, $0.25 par value; Authorized - 5,600 shares; 880 880
Issued - 3,520 and 3,519 shares, respectively
Capital surplus 8,227 7,966
Reinvested earnings 40,944 38,513
Accumulated other comprehensive income (loss) (1,753) (2,674)
Treasury stock, at cost - 1,206 and 1,207 shares, (24,343) (24,213)
respectively
Equity attributable to shareowners of the coca-cola 23,955 20,472
company
Equity attributable to noncontrolling interests 467 390
Total equity 24,422 20,862

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Total liabilities and equity $47,107 $40,519

Notes
N1: Cash and cash equivalents: IAS 7
IAS 7 is to require the presentation of information about the historical changes in cash and cash
equivalents of an entity by means of a statement of cash flows, which classifies cash flows
during the period according to operating, investing, and financing activities. The direct method
shows each major class of gross cash receipts and gross cash payments. The operating cash flows
section of the statement of cash flows under the direct method would appear something like this:

Cash receipts from customers xx,xxx

Cash paid to suppliers xx,xxx

Cash paid to employees xx,xxx

Cash paid for other operating expenses xx,xxx

Interest paid xx,xxx

Income taxes paid xx,xxx

Net cash from operating activities xx,xxx

 The components of cash and cash equivalents should be disclosed, and a reconciliation
presented to amounts reported in the statement of financial position [IAS 7.45]
 The amount of cash and cash equivalents held by the entity that is not available for use by
the group should be disclosed, together with a commentary by management [IAS 7.48]
Note 2: Marketable securities: IFRS 9
IFRS 9 Financial Instruments issued on 24 July 2014 is the IASB's replacement of IAS 39
Financial Instruments: Recognition and Measurement.

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6
CONDENSED CONSOLIDATED STATEMENTS OF In 000’s
INCOME (USD $)
In Millions, except Per Share data 2016 2017

NET OPERATING REVENUES $23,480 $24,818

Cost of goods sold 8,437 8,806
GROSS PROFIT 15,043 16,012
Selling, general and administrative expenses 8,380 9,030
Other operating charges 212 242
OPERATING INCOME 6,451 6,740
Interest income 184 239
Interest expense 271 317
Equity income (loss) - net 609 (434)
Other income (loss) - net 13 118
INCOME BEFORE INCOME TAXES 6,986 6,346
Income taxes 1,658 1,477
CONSOLIDATED NET INCOME 5,328 4,869
Less: Net income attributable to noncontrolling interests 47 57
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF $5,281 $4,812
THE COCA-COLA COMPANY
BASIC NET INCOME PER SHARE (in dollars per share) $2.28 $2.08
DILUTED NET INCOME PER SHARE (in dollars per share) $2.27 $2.06
DIVIDENDS PER SHARE (in dollars per share) $1.23 $1.14
AVERAGE SHARES OUTSTANDING (in shares) 2,314 2,316
Effect of dilutive securities (in shares) 10 25
AVERAGE SHARES OUTSTANDING ASSUMING 2,324 2,341
DILUTION (in shares)

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Company: MCB Bank
Introduction:
MCB Bank Limited (formerly Muslim Commercial Bank) previously named as a (Manjoo Co-
operative Bank) was incorporated by the Adamjee Group on July 9, 1947, under the Indian
Companies Act, VII of 1913 as a limited company. The bank was established to provide banking
facilities to the business community of South Asia. The bank was nationalized in 1974 during the
government of Zulfikar Ali Bhutto. This was the first bank to be privatized in 1991 and the bank
was purchased by a consortium of Pakistani corporate groups led by Nishat Group. As of June
2008, the Nishat Group owns a majority stake in the bank. The president of the bank is Imran
Maqbool.
The group has a presence in business sectors of the country such as banking, textile, cement and
insurance.
Mian Muhammad Mansha is the Chairman of the group (and also MCB).
History
This bank was incorporated under companies’ act 1913 on 9 th July, 1947 (just before partition) at
Calcutta. But due to changing scenario of the region, the certificate of incorporation was issued
on 17th August, 1948 with a delay of almost 1 year; the certificate was issued at Chitagong. The
first Head office of the company was established at Dacca and Mr. G.M. Adamjee was appointed
its first chairman. It was incorporated with an authorized capital of Rs. 15 million.
After some time the registered office of the company was shifted to Karachi on August 23rd,
1956 through a special resolution, now recently the Head office of MCB has been transferred to
Islamabad in July, 1999 and now Head office is termed as Principle Office.
This institute was nationalized with other on January 1st, 1974. At that time it had 506 branches
and deposits amounting to Rs. 1,640 million. Although. MCB has a reputation of a conservative
bank but nationalization also left its effects on this institute as well and by end of year 1991 in
which it was privatized the total number of branches were 1.287 and deposits amounting to as
high as Rs. 35,029 million
PRIVATIZATION
When privatization policy was announced in 1990, MCB was the first to be privatized upon
recommendations of World Bank and IMF. The reason for this choice was the better profitability
condition of the organization and less risky credit portfolio which made'' it a good choice for
investors. On April 8th, 1991, the management control was handed over to National Group (the
highest bidders). Initially only 26% of shares were sold to private sector at Rs. 56 per share.
AFTER PRIVATIZATION
Ten years after privatization, MCB is now in a consolidation stage designed to lock in the gains
made in recent years and prepare the groundwork for future growth. The bank has restructured its
asset portfolio and rationalized the cost structure in order to remain a low cost producer.
After privatization, the growth in every department of the bank has been observed. Following are
some key developments:
 Launching of different deposit schemes to increase saving level.

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  Increased participation on foreign trade.
 Betterment of branches and staff service level.
Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in Pakistan.
MCB VISION & MISSION Statement:
 Vision Statement
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future.
 Mission Statement
We are a team of committed professionals, providing innovative and efficient financial solutions
to create and nurture long-term relationships with our customers. In doing so, we ensure that our
shareholders can invest with confidence in us.
“All component of mission statement use in MCB”
Balance Sheet

Period Ending: 2017 2016

31/12 31/12

Total Current Assets - -

Total Assets 1373430.45 1076690.24
Cash & Due from Banks 116811.78 82933.64
Other Earning Assets, Total 717535.13 581997.66
Net Loans 447223.15 336964.51
Property/Plant/Equipment,
41391.89 34491.13
Total - Net
Property/Plant/Equipment,
53535.52 44371.71
Total - Gross
Accumulated
-12143.63 -9880.59
Depreciation, Total
Goodwill, Net 82.13 82.13
Intangibles, Net 1091.43 652.61
Long Term Investments 4456.24 5447.52
Other Long Term Assets,
- -
Total
Other Assets, Total 44838.7 34121.04
Total Current Liabilities - -
Total Liabilities 1217468.02 931239.5
Accounts Payable 8113.47 6502.05
Payable/Accrued 0.65 1.57

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 Accrued Expenses 5866.72 10136.5
Total Deposits 1001968.94 796055.95
Other Bearing Liabilities,
- -
Total
Total Short Term
111844.13 52275.56
Borrowings
Current Port. of LT
- 35374.97
Debt/Capital Leases
Other Current liabilities,
3634.56 1917.94
Total
Total Long Term Debt 55505.46 38454.76
Long Term Debt 55505.46 38454.76
Capital Lease Obligations - -
Total Debt 167349.59 90730.32
Deferred Income Tax 5661.07 12889.65
Minority Interest 580.66 509.33
Other Liabilities, Total 24292.35 12496.18
Total Equity 155962.42 145450.74
Redeemable Preferred
- -
Stock, Total
Preferred Stock - Non
- -
Redeemable, Net
Common Stock, Total 11850.6 11130.31
Additional Paid-In Capital 23973.02 9924.44
Retained Earnings
101878.88 99012.62
(Accumulated Deficit)
Treasury Stock - Common - -
ESOP Debt Guarantee - -
Unrealized Gain (Loss) 17862.84 25298.79
Other Equity, Total 397.08 84.59
Total Liabilities &
1373430.45 1076690.24
Shareholders' Equity
Total Common Shares
1185.06 1113.03
Outstanding
Total Preferred Shares
- -
Outstanding
* In Millions of PKR (except for per share items)

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Income Statement

Period Ending: 2017 2016 2015 2014

31/12 31/12 31/12 31/12

Net Interest Income 43540.19 44799.56 49668.65 43641.04

Interest Income, Bank 76189.8 69035.82 80840.51 77411.19
Total Interest Expense 32649.61 24236.26 31171.85 33770.14
Loan Loss Provision -2894.49 1204.91 -285.9 -1093.72
Net Interest Income After
46434.67 43594.65 49954.55 44734.77
Loan Loss Provision
Non-Interest Income, Bank 18773.5 17302.71 17324.54 13842.9
Non-Interest Expense, Bank -34594.46 -24176.5 -24490.45 -21223.65
Net Income Before Taxes 30613.71 36720.86 42788.64 37354.02
Provision for Income Taxes 8565.94 14546.71 17753.53 12579.58
Net Income After Taxes 22047.76 22174.15 25035.11 24774.45
Minority Interest -84.62 -111.16 -125.11 -118.86
Equity In Affiliates - - - -
U.S GAAP Adjustment - - - -
Net Income Before
21963.15 22062.99 24910 24655.59
Extraordinary Items
Total Extraordinary Items - - - -
Net Income 21963.15 22062.99 24910 24655.59
Total Adjustments to Net Income - - - -
Income Available to
Common Excluding 21963.15 22062.99 24910 24655.59
Extraordinary Items
Dilution Adjustment - - - -
Diluted Net Income 21963.15 22062.99 24910 24655.59
Diluted Weighted Average Shares 1147.96 1113.03 1113.03 1113.03
Diluted EPS Excluding
19.13 19.82 22.38 22.15
Extraordinary Items
DPS - Common Stock Primary Issue 16 16 16 14
Diluted Normalized EPS 19.23 19.97 22.43 22.38
* In Millions of PKR (except for per share items)

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References
https://www.iasplus.com/en/standards/ias/ias7

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