Accounting
The role of financial statements in investing is that they provide a consistent format that can be used by potential investors and other stakeholders to evaluate a company. There are several components that facilitate this happening. For publicly-traded firms, Generally Accepted Accounting Principles (GAAP) play a key role in the creation of financial statements. GAAP is a common set of accounting principles and procedures that companies use to compile their financial statements (Investopedia, 2012). With companies having to produce their statements according to a common set of criteria, the information is easier to compare not only between different years at the same company, but also against other firms in the industry and all other publicly-traded firms.
The IFRS is essentially the international version of GAAP. Financial statements in many countries, especially those in Europe, are produced according to IFRS. There are a many areas where GAAP and IFRS diverge, so analysts need to be aware of these differences. The process of switching from GAAP to IFRS in the United States is underway. This convergence process is one of the major issues in public accounting right now (AICPA, 2011).
The annual report is a document produced by the company for its shareholders and other external stakeholders. The contents of the annual report are divided into two parts. The first part is the content produced by the company, none of...
Accounting Standards Financial reporting practices and ethical standards in health care finance constitute the foundation of every successful organization. Healthcare organizations and other industries in the general market adopt Generally Accepted Accounting Principles (GAAP). The main objective behind this is to boost the organization's value by maintaining the integrity within and to leverage public trust. This paper summarizes the elements of financial management, GAAP and ethical standards in healthcare finance. Elements of
Financial Statement Fraud Report: Rite-Aid Fraudulent financial reporting can really have unfavorable results on companies, as well as, public confidence in capital markets. This paper will examine the financial statement fraud and will also investigate the financial statement fraud that happened at Rite Aid in the beginning of the 2000's. The outcome of Rite Aid's fraud, as well as a lot of other key accounting scandals, led to the formation of
Financial Statement Analysis The following is an equity research report on Starbucks. The company competes primarily in the quick service food industry, where it holds the #5 market share in the United States, and #1 in its segment of coffee (QSR Magazine, 2011). The company had revenues last fiscal year (ended 10/2/11) of $11.7 billion and net income of $1.245 billion. The current stock price is $43.91, which gives the company
This has been especially true in China and other Asian countries during the past several decades of economic expansion in that region of the world (Bai et al. 2008). Government stakeholders in many of these countries have benefited along with corporations in obscure and outright false financial statements and analyses as they have attracted money form foreign as well as domestic investors an enabled national growth for many Asian
The company that I will be examining is Tesla Motors, using its 2017 financial statements. Net Income The net income for Tesla in 2017 was a loss of $2.2 billion. In the year prior, the company recorded a net loss of $773 million. The net income figure is important for investors because the net income is basically what the company has earned in the prior year. The value of the company is
financial statements of Marriott Hotels and discusses measurement bases they employ. The essay also surveys the literature for current thinking on fair value measurement. According to the International Financial Reporting Standards (IFRS), measurement "involves assigning monetary amounts at which the elements of financial statements are to be recognized and reported" (Deloitte, 2011). Accounting measurement consists of quantifying financial information in dollars or units. These measurements are then used to report
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