Mcdonald's 10-K Sec Report Essay

2176 Words May 24th, 2016 9 Pages
McDonald’s 10-K SEC Report
Intermediate Accounting III


Introduction 2
Deferred Taxes 2-4
Permanent and Temporary Differences 4
Tax Provisions 5-6
Defined Benefit and Contribution Plans 6-7
Earnings Per Share 7-8
Share Based Compensation 8
Direct vs Indirect 8-9
Investing and Financing Activities 9
Noncash Transactions 9
Conclusion 9
Works Cited 10

Introduction In this report I will be reviewing McDonald’s 10-K SEC Filing for the year ending in December 31, 2015. This review will include items regarding their deferred taxes, tax provisions, earnings per share and investing and financing activities just to name a few. These type of items help investors determine how well a company is doing and if
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In other words the company records that they are going to pay more income taxes in the future due to a current transaction in the current period. (Investopedia. 2007) The only notes given discuss the operating loss carryforwards and not the deferred assets themselves which I will discuss later in this report.
Permanent and Temporary Differences
According to the 10-k SEC filing, McDonald’s did not have any permanent differences, but they did have some temporary differences. The temporary differences were approximately $14.9 billion as of December 31, 2015. These temporary differences “consisted primarily of undistributed earnings considered permanently invested in operations outside the U.S. Determination of the deferred income tax liability on these unremitted earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. (McDonald’s Corporation 2015 Annual Report, Pg. 42). Examples of temporary differences include installment sales of property, rent collected in advance, unrealized gain from recording investments at fair value, prepaid expenses, and accelerated depreciation. Examples of permanent differences include depletion, dividends received, fines and penalties, government bonds, life insurance premiums, life insurance proceeds, and stock options. (Barnes)
Tax Provisions As seen in the table below,

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