Principles of Accounting
Freddy Wilkerson ACC403 Module 1 Case
A financial statement is a report card of business. The Generally Accepted Accounting Principles (US GAAP) is a set of rules, methods, processes and procedures used by companies across all industries in order to prepare standardized financial statements. They maintain consistency and reduce the risk of fraud and error. If US GAAP didn’t exist, companies would not be able to provide accurate and consistent financial information to investors, creditors, and stakeholders of a company. International Financial Report Standards (IFRS) are standards issued by the International Accounting Standard Board. While some countries require all companies to adhere to the IFRS, others merely allow it or try to coordinate their own country’s standards to be similar. It helps to examine and compare companies in a transparent and equal way. Annual Report is a document prepared by a company’s management to the shareholders explaining what happened in the business for the year. 10-k is an annual filing that publicly traded companies are required by law, to send into the Securities and Exchange Commission containing everything about their business that an investor would want to know before buying or selling shares of stock in the corporation. The financial statement is the most important part of the 10k because they allow you to see what is going on with the company’s financial liquidity statements help authorities monitor cash levels in banking operations. It is similar to preparing a balance sheet. It is known as a statement of maturity of assets and liabilities.
When explaining the difference between Revlon and Beirsdorf, Revlon, Inc. operates its business through its direct wholly owned subsidiary, Revlon Consumer Products Corporation (Products Corporation) and its subsidiaries. It is a direct and indirect majority-owned subsidiary...