Introduction to Accounting
Introduction to Financial Accounting
Introduction to Financial Accounting
The question asked was what accounting and auditing standard does Abercrombie and Fitch utilize. We also need identify the accounting and auditing standard for Hennes and Mauritz. Lets discuss the difference standards and where they are enforced. In accounting there are standards and practices that each company has to adhere to when dealing with finance. There are various practices and policies in place to act as a check and balances. The General Accepted Accounting Principles is used by United States to record and report accounting information of a company. “GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements.” (http://www.investopedia.com)
Abercrombie and Fitch’s headquarters is based out of New Albany, Ohio. The company has over 300 stores that operate within the United States. Even though the company is headquartered in the US it does have operations abroad. Even though Abercrombie and Fitch have locations abroad they will follow GAAP vice the IFRS. Abercrombie and Fitch uses the GAAP to account for it financial earning and losses. The purpose of the GAAP is so that companies financial reporting is transparent and adheres to the standards and policies set forth by the SEC. The General Accepted Accounting Principles have a direct impact on the company’s financial statement.
The GAAP applies to all US based companies. The General Accepted Accounting Principles help potential investors to determine if it would be viable to invest or not. This account practices helps in maintaining the accuracy of the financial statement, balance sheets and cash flow of the
Introduction to Financial Accounting
organization. When companies do not adhere to these practices it helps to distort financial data. When this unethical practices occurs the company’s intent
Introduction to Financial Accounting
The question asked was what accounting and auditing standard does Abercrombie and Fitch utilize. We also need identify the accounting and auditing standard for Hennes and Mauritz. Lets discuss the difference standards and where they are enforced. In accounting there are standards and practices that each company has to adhere to when dealing with finance. There are various practices and policies in place to act as a check and balances. The General Accepted Accounting Principles is used by United States to record and report accounting information of a company. “GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements.” (http://www.investopedia.com)
Abercrombie and Fitch’s headquarters is based out of New Albany, Ohio. The company has over 300 stores that operate within the United States. Even though the company is headquartered in the US it does have operations abroad. Even though Abercrombie and Fitch have locations abroad they will follow GAAP vice the IFRS. Abercrombie and Fitch uses the GAAP to account for it financial earning and losses. The purpose of the GAAP is so that companies financial reporting is transparent and adheres to the standards and policies set forth by the SEC. The General Accepted Accounting Principles have a direct impact on the company’s financial statement.
The GAAP applies to all US based companies. The General Accepted Accounting Principles help potential investors to determine if it would be viable to invest or not. This account practices helps in maintaining the accuracy of the financial statement, balance sheets and cash flow of the
Introduction to Financial Accounting
organization. When companies do not adhere to these practices it helps to distort financial data. When this unethical practices occurs the company’s intent