mcdonalds financial reort analysis

0 / 5. 0

Analysis of McDonald’s Annual Financial Report Name: Institution Affiliation: Date: Analysis of McDonald’s Annual Financial Report Presentation of the Information Related to the Company’s Derivatives Derivatives can either be financial assets or liabilities. Fair value is relied on by the Company to recognize variations of financial assets and liabilities as well as non-financial assets and liabilities. Fair value constitutes the money that the Company would receive for the sale of an asset in a rational market or the money the Company would pay for the acquisition of a liability in a similar market. To optimize the application of observable inputs, the company ranks fair value disclosures based on three hierarchies (McDonald's Corporation 2015 Annual Report, 2015). A valuation hierarchy relies on the transparency of input during the valuation of asset or liability at the measurement date. The three hierarchies are stipulated as follows: 1. Level 1 – Inputs are valued based on the quoted prices of similar asset or liability in a rational market. 2. Level 2 – Inputs are valued based on the quoted prices of similar asset or liability in a rational market and prices of an asset or liability are also valued based on models. 3. Level 3 – The methodology used to value an asset or liability is unobservable and significant to the fair value valuation of the asset or liability. Types of Derivatives Used By the Company The Company is predisposed to volatility in foreign exchange rates and interest rates since it operates in a global economy. The Company relies on debt denominated in foreign currency as well as derivative instruments to cushion

Free mcdonalds financial reort analysis Essay Sample

Related samples

Zika virus: Transmission form Introduction The Zika virus belongs to the Flaviviradae family, was found for the first time in a monkey called Rhesus febrile and in...

Zika virus: cases and prevention Introduction The World Health Organization (WHO) has confirmed that Zika is a virus caused through the mosquito bite which is...

Zeus The King of Greek mythology Introduction Zeus is the Olympic God of heaven and thunder, the king of all other gods and men and, consequently, the main figure...

Zeus's punishment to Prometheus Introduction Prometheus, punished by Zeus Prometheus, punished by Zeus. Prometheus is a ‘cousin’ of Zeus. He is the son of the...

Comments

Leave feedback

Your email address will not be published. Required fields are marked *