National Accounting Standards in Retail Industry
national accounting standards in retail industry
Evaluating International Company under
Abstract This paper analyses the international firms under the national accounting standard in retail industry. The study applies two typically firms which are Woolworths from Australia and Walmart from the United States and compare the two firms in 4 perspectives. Firstly, the different in recognition of intangible assets, revenue, tax, inventory under IFRS (Aus) and U.S.GAAP. Secondly, describe consequence of the different recognition of accounting items and how it affects to financial statement and different regulation under AISC (Aus) and SEC (US). Thirdly, describe the factors that influence the accounting practices of Walmart and Woolworths. In the end, evaluate the theoretical benefits in adopting IFRS standards for both these two companies.
Introduction
Faced with the pressure of the globalization process and, over the past century, governments set several accounting standards. Countries follow different standard 、accounting systems and also regulations. In the U.S., Generally Accepted Accounting Principles are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly traded and privately held companies, non-profit organizations, and governments. But in the recent years, Accounting and financial reporting has been undergoing some changes. This change is mainly brought about by the adoption of the International Financial Reporting Standards (IFRS) accounting by companies from more than 100 counties all over the world. These 100 countries have been previously using the GAAP or the Generally Accepted Accounting Principles. (Kotabe and Helsen, 2004) After seeing the many advantages of using the accounting, these countries have abandoned the GAAP and are now using the IFRS. This paper is to examine the international firms under the national accounting standard in retail industry. Woolworths
Evaluating International Company under
Abstract This paper analyses the international firms under the national accounting standard in retail industry. The study applies two typically firms which are Woolworths from Australia and Walmart from the United States and compare the two firms in 4 perspectives. Firstly, the different in recognition of intangible assets, revenue, tax, inventory under IFRS (Aus) and U.S.GAAP. Secondly, describe consequence of the different recognition of accounting items and how it affects to financial statement and different regulation under AISC (Aus) and SEC (US). Thirdly, describe the factors that influence the accounting practices of Walmart and Woolworths. In the end, evaluate the theoretical benefits in adopting IFRS standards for both these two companies.
Introduction
Faced with the pressure of the globalization process and, over the past century, governments set several accounting standards. Countries follow different standard 、accounting systems and also regulations. In the U.S., Generally Accepted Accounting Principles are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly traded and privately held companies, non-profit organizations, and governments. But in the recent years, Accounting and financial reporting has been undergoing some changes. This change is mainly brought about by the adoption of the International Financial Reporting Standards (IFRS) accounting by companies from more than 100 counties all over the world. These 100 countries have been previously using the GAAP or the Generally Accepted Accounting Principles. (Kotabe and Helsen, 2004) After seeing the many advantages of using the accounting, these countries have abandoned the GAAP and are now using the IFRS. This paper is to examine the international firms under the national accounting standard in retail industry. Woolworths
References: ASIC (1 February 2005). "The laws ASIC administers". Retrieved 16 April 2005. Securities Act of 1933, the U.S. Securities and Exchange Commission Masaaki Kotabe and Kristiaan Helsen, 2004,Global Marketing Management—3rd Edition Roberts, C., Weetman, P. & Gordon, P., 2008. International Financial Reporting: A Comparative Approach, 4th edn, Prentice Hall, Harlow, Essex. Wikipedia, n.d. List of Countries by GDP (PPP) Per Palmer, D., 2008 Budmar, Peter, 2011. Woolworths adopts Visa payWave Technology for Checkouts. Masaaki Kotabe and Kristiaan Helsen, 2004, Global Marketing Management—3rd Edition Walmart, 2011. Annual Reporting, Building the next generation Walmart. Closer every day. 2011. Woolworths limit. Woolworths limited Annual Report 2011 Statements of woolworths