Financial Reporting Pt 1

There are large and small businesses all across the country, with many different public and private accounting firms that handle their accounts. Many of these businesses are raking in millions and millions of dollars a year. Wal-Mart is one of them. We will be exploring Wal-Mart and how it came about as a business, along with examining their balance sheets, income statement, and the cash flow statement. We will also be taking a look at what Wal-Mart’s current revenues are over the annual reporting periods, and who handles their accounting process.

I would now like to examine Wal-marts financial data. Wal-Mart’s revenue improved over these three years by $39,736 million which is a gross increase of 9.1%. Additionally the Cost of Sales climbed from

For the final project of managing finance Wal-Mart Stores Inc is chosen as the discussion target. Being one of the grocery retail shop leaders in the world, Wal-Mart (WM) operates business with 10,000 retail units in 27 countries with about USD444 million of sales in 2012 (Wal-Mart homepage 2012).

Wal-Mart has an increase on per share of common stock, between 2005-2007. Based on the annual report of Wal-Mart for 2007, the company generally has a working capital deficit due to the

In 2016, Wal-Mart’s income came in at $117.5 billion, which increased 1.4%, from the previous year.

year (Ortega 205). Wal-Mart stores do over $67 billion dollars in annual sales (Norman 207). A

Business economy today has seen vast amounts of businesses fail. However, Wal-Mart Corporation is standing and increases their revenue yearly. In 2009 alone, Wal-Mart generated approximately $404 billion dollars in revenue. That type of success only proves that the organization has everything in order to keep on the track of success.

2015 2014 2013 Walmart Gross Profit 124.62B 121.15B 120.57B 118.23B 116.67B

After analyzing Wal-Mart’s annual report for 2010, attention has been brought to several items that require closer examination. A common “red flag” to questionable accounting has been found within Wal-Mart’s statement of cash flows and income statement. There is an increasing gap between the company’s reported income and the cash flow from operating activities. In the year 2008 reported income and cash flow from operating activities differed by $484 million. However the difference increased a considerable $2,249 and $4,183 billion in the years 2009 and 2010 respectively. This increasing gap is a significant warning sign that the company may be changing accrual estimates.

As can be seen from the value and trend of earningper of Share of Wal-Mart the value delivered to the shareholders has increased in the period 2008 to 2012. This means that the organization has been successful in creating more income every year and then delivering a larger portion of income to the shareholders. In 2008, the Earnings per Share were 3.16 dollars which increased to 4.56 in 2012.

As shown on Appendix A, in 2015, Wal-Mart’s revenue and profit increased 2% from the previous year, despite the current economy. The long-term debt in January 31, 2015 was 43,692 million dollars; compared to the 2014 Debt Lowest, this is a decrease (Appendix B). The stock grew between 2011 and 2012. Between 2012 and 2015 it has been stable with little fluctuation. After 2015, stock rapidly decreases (Appendix C).

Wal-Mart is the third largest company in the world by revenue and the largest retailer in the world. Its sales for fiscal year 2011-2012 were USD446 Billion with profits of USD16.5Billion. Of its revenue, 28.4% is generated outside of its country of origin of

In 1962, Wal-Mart was built sometime by Sam Walton in Roger, Arkansas. Wal-Mart has 5,100 stores and clubs all over the United States and a sum of 8,300 unit's global. The company was able to employ something like over 2 million associates from all over the world and about 2.4 million in the United States. Wal-Marts average annual total income rate was somewhat in excess of 10% for the three years from the fiscal year that is ending 2009 to the fiscal year ending 2011 (Blanchard, 2008). Research shows that they also had what was known as a stock split of 100 %; Wal-Mart was able to see this split 12 times all through the eras of 1973 through 2002. They have received many awards and were categorized 5th in Fortune magazine's "Global Most Well-regarded All-Stars" as the third most appreciated corporation in America (Wal-Mart, 2013)

Wal-Mart is the highest revenue generating organisation in the world (Forbes, 2014). According to WalMart’s annual report (2014), the company owns 6,100 stores in 27 countries. It employees 2.2 million

The IASB (The International Accounting Standards Board ) issued Exposure Draft ED/2015/3 Conceptual Framework for Financial Reporting on 28 May 2015, which proposes the changes for the Conceptual Framework . The conceptual framework define the objective and the purpose of the financial reporting. Exposure Draft proposed include the revisions of Conceptual Framework such as , the definitions of the financial statements, recognition and derecognition , measurement , presentation and disclosure and items in Other Comprehensive Income . The reason why IASB is improving the Conceptual Framework is because of lack clarity such as : some important topic are not covered , the guidance are unclear and some aspects are out of topic. The objective of this proposal is to develop financial reporting by providing clear and complete concept, depends in some area which are mention or not mention in details. This report include differences between debt and equity in IFRS, approaches that should be included in the Other Comprehensive Income and criticism of lack of clarity and consistency in the framework.