Procter and Gamble

Procter and Gamble have been existence for over 173 years, an imaginable thought especially in today’s economic debacle. Created by William Proctor and James Gamble in 1873, Procter and Gamble is one of our countries oldest yet profitable companies. What began as a small candle and With Brands such as Ivory, Tide, Pampers, Always, and Old Spice P&G is a company that affects every one at some stage of their lives. With offices globally Procter and Gamble provides jobs to every walk of life.

This report analyzes the balance sheet, income statement, statement of cash flows of Procter and Gamble by comparing financial reports for fiscal year ending 2011 and 2010. The information contained in this report highlights the powerhouse that is Procter and Gamble.

Procter & Gamble --- The Financials

As with most companies today, Procter and Gamble’s balance sheet contains both deferred tax assets and deferred tax liabilities. Deferred tax assets are best defined as taxes which are to be saved in the future when future taxable amounts reduce taxable income. “When temporary differences cause accounting income to be less than taxable income, the result is future deductible amounts and a deferred tax asset.”

Deferred Tax Liabilities are those taxes which are to be paid in the future when future taxable amounts become taxable. “When temporary differences cause accounting income to be greater than taxable income, the result is future taxable amounts and a deferred tax liability.”

Both deferred tax assets and deferred tax liabilities arise when temporary differences reverse, both are also based on an enacted tax rates and laws. . Based on the Consolidated Balance Sheet we see that Procter and Gamble’s deferred tax expense had a slight increase in 2011 also upon examination of the balance sheet we see that the amounts of deferred taxes for both 2011 and 2010 consisted of the following amounts:

Per the information disclosed in the footnotes of Procter & Gamble’s...