Pologeorgis Updated March 12, — 1:
The company has grown through mergers and acquisitions to become the largest retail outlet in the globe.
The main business of the company is corporate retail. The retailer offers a variety of products to its customers at a lower price compared to its competition. According to Fortune ratings, the corporation ranks third among the largest corporations in the globe. The selling point of the company is by ensuring that the customer can find any product in the stores at a competitive price.
The company sells its products at a lower price to attract and retain customer. The company helps producers to enable them produce quality products.
The company assists through funding, technical advice and promise of a ready market. The producer in turn markets their goods to the company at a discount.
The company also has a large employee base to ensure that the customer is satisfied with the products offered. The management trains the staff regularly to ensure professionalism in the workplace.
Walmart has outlets in 15 nations using 55 different names. The difference in the currency and accounting standards used in the 15 nations poses a problem to the accounting department. Given the SEC's current position on requiring U. The home company is located in the United States, which adopts U.
The other branches are located in foreign countries that adopt other accounting standards. Adapting IFRS will enable the company to enjoy more benefits than the current accounting standards. The investors need to know how the stock in home and foreign market is performing. Many companies in the foreign market use IFRS thus unification of the accounting standards will ease the burden on the finance department.
Adapting a uniform accounting standard will provide comparability. Comparability enhances transparency within the organization, which attracts investors. Walmart will be able to attract and retain its investors through adaptation of IFRS.
Walmart will save on time and cost required to prepare financial statements. Currently Walmart has to convert all the financial statements prepared using other financial standards into U. Some of the elements of the financial statement depend on the type of accounting standard used in a country.
The use of IFRS ensures that the accounts of all the branches are uniform. The use of a uniform accounting standard ensures that the investor can peruse strategies such as global diversification. Walmart faces the challenge of reporting using multiple standards.
Using multiple reporting standards increases the auditing and accounting expenses for the organization. Multiple reporting standards increase the probability of errors occurring in the financial reports, which affects investor confidence.
Adapting to IFRS standards will also enable the company to expand its operations into other emerging markets.
The growth of the company affects the accounting standards used in its branches. Using a uniform method of reporting its finances will ensure that the company has adequate resources to sustain expansion into new markets.US GAAP versus IFRS The basics | 2 Convergence in several important areas — namely, revenue, leasing and financial instruments - continued to be a high priority on the agendas of both the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) (collectively, the Boards) in 3.
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Under IFRS, a write-down of inventory can be reversed in future periods if specific criteria are met.
Under GAAP, once inventory has been written down, any reversal is prohibited. Discontinued. International Financial Reporting Standards (IFRS) is the accounting method that’s used in many countries across the world.
It has some key differences from the Generally Accepted Accounting Principles (GAAP) implemented in the United States. Running head: US GAAP vs IFRS 1 US GAAP vs IFRS 12 US GAAP VS IFRS ABSTRACT For the business world, especially those in the accounting field, a major issue has risen in recent years relating to the differences between the United States Generally Accepted Accounting Principles (US GAAP) and the International Financial Reporting Standards (IFRS).
In the U.S., companies use the generally accepted accounting principles, or GAAP, while international companies use the International Financial Reporting Standards, or IFRS.