Disclosure Analysis

The company chosen for my disclosure analysis is the company I work for Total, S.A.; Total’s corporate offices are located in France with corporate offices located in Houston, Texas, with offices in several countries and three plant sites here in Texas. The company offers services in refining of petrochemicals, oil and gas, mining, and polyethylene (which creates the plastic bags or containers that hold food products such as vegetables or fruit found in supermarkets), polypropylene (which makes the lids for plastic bottles or jars- harder plastic that that of bags), then polystyrene (which makes the plastic utensils or Styrofoam cups, plates and bowls found in restaurants and supermarkets for food storage).

In viewing the most recent financial statements submitted by Total S.A. on March 26, 201 on EDGAR, the reports had many notes attached to various sections throughout statements. Within the first part of the notes was an explanation of the business combinations and how they are accounted for by acquisition method; implies recognition of all acquired identifiable assets, assumed liabilities and non-controlling interests in the companies acquired by the Group at fair value.

Consideration transferred is lower than fair value of acquired identifiable assets and assumed liabilities; any residual badwill is recorded as income. Monetary transactions are translated into the functional currency of the entry. At each balance sheet date, monetary assets and liabilities are translated at the closing rate and the resulting exchange differences are recognized in the statement of income.

Sales figures include excise taxes collected by the Group within the course of oil distribution operations. Revenues from sales recognized when significant risk and rewards of ownership passed to buyer. Revenues from sales of crude oil, natural gas and coal are recorded upon transfer of title. Revenues from services recognized when services are rendered. Exploration costs, geological and geophysical costs, including seismic surveys are expensed as incurred. Development costs incurred for drilling of wells and construction of production facilities are capitalized- depletion rate equals ratio of oil and gas production for the period.

Since there is project work being recorded for work in other countries, they are listed separately and the percentage of work completed that makes of final totals for revenue of the year are listed in notes sections explaining the totals recognized for each individual site or country location.