Case Study: Abercrombie & Fitch

948 Words4 Pages
1. Abercrombie & Fitch (ANF) uses US GAAP as its accounting standards, as required by US securities regulators and accounting conventions (2009 ANF Annual Report). The Securities and Exchange Commission strongly recommends the use of the most up-to-date GAAP taxonomy in the preparation of financial statements and communications for American public companies (, 2011). H&M is a Swedish company, and its stocks are listed on the OMX Nordic Exchange in Stockholm (, 2012). Firms listed on the OMX Nordic Exchange are to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, and these principles must be used in the preparation of any financial report (, 2011). 2. In Stockholm, the audit report is part of the annual financial report, and is therefore subject to the same set of standards as the rest of the financial report, IFRS, and the generally accepted accounting standards of Sweden (H&M 2009 Annual Report). The 2009 annual report for Abercrombie & Fitch notes that the company's auditors, PriceWaterhouseCoopers, "conducted (its) audits in accordance with the standards of the Public Company Accounting Oversight Board" of the United States. This is the normal set of accounting standards used for the auditing of publicly-traded firms in the United States. As with the accounting standards that these two firms use, the difference in the auditing standards relates to the different nations
Open Document