International Fashion Industry Accounting Practices Comparison Essay by serendipity

International Fashion Industry Accounting Practices
This paper compares the accounting and operation funding practices of three international companies in the fashion industry: GAP-U.S.A.; H&M, a Swedish company; and Benetton, an Italian company.
# 50726 | 1,880 words | 4 sources | MLA | 2004 | US
Published on Apr 20, 2004 in Accounting (Financial) , Business (Companies) , Business (International)


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Description:

This paper explains that, examining the accounting measures and practices of each of these companies, both the American and European companies have a bottom-line concept of accounting that is represented by the basic accounting principle of 'assets=liabilities + equity'. The author points out that, in the United States, laws require a financial statement unless a company is traded on the stock exchange; in Europe, companies, which have only debt securities listed on the EU regulated markets, and which have securities listed on the non-EU markets, are required to prepare consolidated accounts according to internationally recognized standards. The paper demonstrates the difference in international reporting practices, which make comparison almost impossible; with globalization, these differing practices must be standardized.

From the Paper:

"Any company financial statement includes some basic information; a balance sheet, income statement, cash flow statement and financial statement notes, which explain any irregularities or noteworthy numbers. The United States has been lobbying to create a standardized representation of these numbers to create a level playing field when it comes to comparing financials. Although, Europe is slightly behind in this endeavor, they are also moving towards the concept of standardization."

Cite this Comparison Essay:

APA Format

International Fashion Industry Accounting Practices (2004, April 20) Retrieved September 22, 2020, from https://www.academon.com/comparison-essay/international-fashion-industry-accounting-practices-50726/

MLA Format

"International Fashion Industry Accounting Practices" 20 April 2004. Web. 22 September. 2020. <https://www.academon.com/comparison-essay/international-fashion-industry-accounting-practices-50726/>

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