Instructions:
Please answer the following question in a minimum of 500
words. Be sure to include 2 citations.
Question:
Merck and Co invests in securities of other companies. Access
Mercks 2010 10k (which includes Financial Statements) using
edgar at
www.sec.gov
1.
What is the amount and classification of any investment
securities reported on the balance sheet? In which current and
noncurrent asset categories are investments reported by Merck?
What criteria are used to determine the classification?
2.
How are unrealized gain or losses reported? Realized gains or
losses?
3.
Are investments reported by the equity method?
4.
What amounts from equity method investments are reported in
the comparative income statements?
5.
Are Cash flow effects of these investments reflected in the

companys comparative statements or cash flows? If so, what
information is provided by this disclosure?