Referring to their most recent annual reports, access the financial statements of a foreign company and...

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Accounting

Referring to their most recent annual reports, access thefinancial statements of a foreign company and a domestic companywith which you are familiar to complete this assignment.
A. Determine the GAAP the foreign and domestic companies use toprepare financial statements.
b. Determine whether the financial statements provided by theforeign and domestic companies include the same components
c. list any format differences in the companies' incomestatement
d. list any format differences in the companies' balancesheet
e. Note any terminology differences that exist between the twocompanies income statement and balance sheet
f. In very general terms, asses whether the scope and content ofthe information provided in the notes to the financial statementsis similar between the two companies
g. provide your overall impression of how the two companies' setof financial statements compare

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Analysis of Foreign and Domestic Financial Statements Generally Accepted Accounting Principles GAAP refers a common set of accounting standards principles and procedures that firms are expected to follow when compiling their financial statements Weygandt et al 2015 It is basically a combination of certain authoritative standards which have been set by financial statements and are usually accepted ways of reporting and recording accounting information GAAP is meant to improve the clarity of the companys communication of its financial information This paper compares GAAP of a domestic company American firm Bharat Heavy Electricals Ltd Company and a foreign company Caterpillar Inc Income Statement For caterpillar Inc the income statement is a presentation of the financial results of the firms business undertaking over a given period of time Income statement communicates the amount of revenue generated by the company during a period of time and the cost that was incurred in relation to generating that revenue The income statement features gross margin operating profit other income expenses and profit See Answer

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