Comparative analysis of two international companies
Comparative Analysis of Two International Companies
Trident University International
Accounting for Decision Making - ACC501
April 22, 2013
Comparative Analysis of Two International Companies
Caribou Coffee Company, Inc. is a leading coffee company in the United States that boasts the second largest premium coffee operation in the U.S. ("Caribou," n.d.). The Frazer Group is an international food services company, based in Finland, that seeks to grow with an optimistic view on it’s already firm grasp on the food service industry ("Frazer," n.d.).
This paper will discuss the accounting standards, external auditing standards, and annual reports of the Caribou Company and Frazier Group. A brief comparative analysis will be conducted between select data from the financial statements of these two companies, including profitability and financial position.
Accounting Standards.
For Caribou Coffee, Financial Accounting (FASB) standards, Generally Accepted Accounting Standards (GAAP), are used for financial reporting. Public Company Accounting Oversight Board (PCAOB) standards are employed for internal auditing measures, which is required by the Securities and Exchange Commission (SEC) for all publicly traded companies. Caribou Coffee uses some non-GAAP measures, such as Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), as a management and investment tool for comparing the company’s profitability against other companies in the premium coffee industry ("Caribou," n.d.).
The Frazer Group adheres to the accounting standards required by Finland and the Finnish Accounting Board’s (FAB) guidelines ("Frazer," n.d.). Interestingly, as a member of the European Union (EU), Finnish companies adopt most of the standards set forth by the International Accounting Standards Board (IASB). The EU reviews and adopts nearly all International Financial Reporting Standards (IFRS), but because of the length of time required for the
Trident University International
Accounting for Decision Making - ACC501
April 22, 2013
Comparative Analysis of Two International Companies
Caribou Coffee Company, Inc. is a leading coffee company in the United States that boasts the second largest premium coffee operation in the U.S. ("Caribou," n.d.). The Frazer Group is an international food services company, based in Finland, that seeks to grow with an optimistic view on it’s already firm grasp on the food service industry ("Frazer," n.d.).
This paper will discuss the accounting standards, external auditing standards, and annual reports of the Caribou Company and Frazier Group. A brief comparative analysis will be conducted between select data from the financial statements of these two companies, including profitability and financial position.
Accounting Standards.
For Caribou Coffee, Financial Accounting (FASB) standards, Generally Accepted Accounting Standards (GAAP), are used for financial reporting. Public Company Accounting Oversight Board (PCAOB) standards are employed for internal auditing measures, which is required by the Securities and Exchange Commission (SEC) for all publicly traded companies. Caribou Coffee uses some non-GAAP measures, such as Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), as a management and investment tool for comparing the company’s profitability against other companies in the premium coffee industry ("Caribou," n.d.).
The Frazer Group adheres to the accounting standards required by Finland and the Finnish Accounting Board’s (FAB) guidelines ("Frazer," n.d.). Interestingly, as a member of the European Union (EU), Finnish companies adopt most of the standards set forth by the International Accounting Standards Board (IASB). The EU reviews and adopts nearly all International Financial Reporting Standards (IFRS), but because of the length of time required for the
References: Audit and assurance services. (2013). Retrieved April 15, 2013, from http://www.pwc.fi/en/services/audit-and-assurance.jhtml Caribou Coffee Investor Relations. (n.d.). Retrieved April 15, 2013, from http://phx.corporate-ir.net/phoenix.zhtml?c=192910&p=irol-irhome Frazer Group Investor Relations. (n.d.). Retrieved April 15, 2013, from http://www.fazer.com/?utm_source=fazer_splash Principles of Accounting. (n.d.). http://www.principlesofaccounting.com Use of IFRS jurisdiction. (2013). Retrieved from http://www.iasplus.com/en/resources/use-of-ifrs/#Note1 Table Select Financial Data