The financial statements of P&Gare presented in Appendix 5B.

Question

The financial statements of P&Gare presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website,

Instructions

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Refer to P&G’s financial statements and the accompanying notes to answer the following questions.

(a)What investments does P&G report in 2011, and how are these investments accounted for in its finan- cial statements?

(b)How are P&G’s investments valued? How does P&G determine fair value?

(c)How does P&G use derivative financial instruments?

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