Reference no: EM131668999

Case

Using the information provided in the Volkswagen Group 2015 Annual Report and the Daimler Group 2015 Annual Report, please answer the following questions (and provide the page references from the report where you obtained your information):

1. What are the revenue recognition policies for each company? Please compare and contrast.

2. How do the two companies account for their intangible assets? For example, amortization methods, useful lives, expense vs. capitalization of research and development costs, etc. Once again, what similarities and differences do you see in these policies between the two companies.

3. How do the two companies account for their property, plant and equipment? For example, depreciation methods, useful lives, capitalization policies, lease policies, etc. And again, what similarities and differences do you see in the policies between these two companies.

4. How do the two companies account for their inventory? What inventory method(s) do they use and how/what costs are allocated to inventory versus being expensed as a period cost.

5. How does each company account for their borrowing costs and where are these costs presented on their financial statements?