Caribou Coffee vs Fazer Group

Topics: Income statement, Generally Accepted Accounting Principles, Balance sheet Pages: 5 (1174 words) Published: March 10, 2013


The Caribou Coffee Company is a company based out of Minneapolis, MN with almost 500 Company-owned locations. With locations in 16 US states and the District of Columbia, as well as in several countries outside the United States. The company policy stats, does not discriminate based on race, creed, color, religion or sexual orientation. Our benefits package includes domestic partner benefits for those employees who work more than 20 hours per week.

The Fazer Group is a company most known for its chocolates but has many “taste sensations”. The company says its vision is to be the leading food and service company on defined markets. They want to grow in all its businesses building on its brands. They also want to be the most attractive employer in the branch and the first choice for its stakeholders.

Discussion (Caribou Coffee Company)

As of June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-06, Comprehensive Income (Topic 820). This accounting standard update eliminates the option to present components of other comprehensive income as part of the statement of equity and requires the total of comprehensive income, the components of net income, and the components of other comprehensive income be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. It also requires presentation on the face of the financial statements of reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statements where the components of net income and the components of other comprehensive income are presented. This accounting standard update became effective beginning in our first quarter of fiscal 2012. In December 2011, the FASB issued ASU No. 2011-12 which indefinitely defers the guidance related to the presentation of reclassification adjustments only. The adoption of this accounting standard update resulted in financial statement presentation changes only.

Fazer Group

Fazer Group reports and is audited in accordance with the Global Reporting Initiative. The GRI is a non-profit organization established in Amsterdam in 1997 to provide an international standard for the reporting of economic, environmental and social performance. GRI is very similar to FASB.

What auditing standards are used by the external auditors?

The Caribou Company conducted their audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as they considered necessary in the circumstances. The company believes that their audit provides a reasonable basis for that opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and...
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