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Comparison of Jnj and P&G

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Comparison of Jnj and P&G
Beichen Wen E00153512 Final paper ACCT-5010 Seminar in Financial Accounting Dr. Pointer May 3rd, 2012

Introduction
The primary objective of this paper is to analyze the similarities and differentiations in accounting policies of two companies: Johnson & Johnson (J&J) and Procter & Gamble (P&G).
The accounting policies are mainly focus on their different approaches in solving accounting problems about acquisition and divestitures, investment and joint ventures, financial instruments, stockholders’ equity, etc. The purpose of discussing these policies is to detect the advantages and disadvantages of each policy for managers to help them search a better accounting approach in achieving their companies’ success. Moreover, many financial ratios are calculated and discusses, with the goal of identify the real financial performance of each company, and provides some useful strategies and suggestion to improve their financial conditions.
The mainly reason to compare these two companies is because they have many similarities. First, both of them are large multinational company. Second, both of their businesses cover a huge range of business markets, such as beauty segments, nutrition snacks, etc. Third, both of them devote themselves into public welfare. They contribute both financial or product supports for people who need helps around the world. Moreover, both of them use their innovations to help people save energy

History of Johnson & Johnson Johnson & Johnson (J&J) was founded in New Brunswick, New Jersey, U.S. in 1886 by three brothers: Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson. Since then, this family-owned business has gradually become a famous worldwide enterprise. For years, J&J has been engaged in developing products and innovating new products. The first well-known product of J&J is created in 1921 with the name of “Band-Aid adhesive bandages”, which can bandage small wounds in
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