Locate the most recent financial statements and related disclosure notes of FedE

Question

Locate the most recent financial statements and related disclosure notes of FedEx Corporation. You can locate the report online at www.fedex.com.

Required:

3. What are the cash payments FedEx made for interest and for income taxes in the three years reported? (Hint: See the disclosure notes.)

4. Obtain the relevant authoritative literature on disclosure of interest and income taxes using the FASB Accounting Standards Codification. You might gain access at the FASB website (asc.fasb.org). What is the specific citation that specifies the way FedEx reports interest and income taxes separately that enabled you to answer requirement 3?

Explanation / Answer

Answer:3 Companies are required to separately disclose cash payments for both interest and income taxes. When the direct method is used to report operating activities, those amounts automatically are shown. But when a company uses the indirect method as FedEx does, supplemental disclosure is needed.

Note 14: Supplemental Cash Flow Information Cash paid for interest expense and income taxes for the years ended May 31 was as follows:

Answer:4 The specific citation that specifies the way FedEx reports interest and income taxes is FASB ACS 230-10-50-2: "Statement of Cash Flows-Overall- Disclosure-Interest and Income Taxes Paid ."

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