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,
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?