Introduction

The principal goal of this assignment is to understand the impact that the use of different set of generally accepted accounting principles (GAAP) in the Analysis of an international company’s financial statements. In this assignment we need to understand and analyze the impact of the Company FEMSA Annual Report with the two variables using on this report; Mexican pesos and U.S. Dollars.

FEMSA, the largest beverage company in Latin America, started operations in 1890. FEMSA work thru three important roots: Coca-Cola FEMSA, FEMSA Cerveza (Heiniken Mexico) and FEMSA Comercio. (See Figure 1.1.) Figure 1.1 Participation of the operations of FEMSA

Coca-Cola FEMSA represents the largest and most important bottler in Latino America and the second largest in the world, which represents the 16% of the volume around the world, this number represents the biggest bottler around the world in terms of volume (See Figure 1.2.)

Figure 1.2 Principals Bottlers in the world for Coca-Cola Company

The company has presence in Latin America, including Mexico, Brazil, Argentina, Colombia, and Venezuela to make and examples. FEMSA has had fusion with other important companies, the last 2010 FEMSA Cerveza make a fusion with Heineken, this Holland is one of the biggest beer company in the world, this fusion represents the rise of volume and presence in countries where FEMSA was not.

Figure 1.3 Presence of FEMSA in Latin America

FEMSA Comercio has had an important increased of revenue in the last years, in the past 5 years from 2,683 million of dollars to 5,028 million of dollars, OXXO it principal self-service for Comercio has risen the numbers of stores from 4,141 to 9,148 which represents the 120% of increased in the last 5 years.

All of these several variables have helped to deliver good performance for the company, as we can see the number