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International Automotive Manufacturing Companies For This Annual Report Project Essay

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I have chosen two major international automotive manufacturing companies for this annual report project. General Motors Co. a Delaware Corporation headquartered in Detroit, Michigan and its international competitor Daimler AH a German Corporation located in Stuffgart, Germany. These two companies build and sell cars, trucks and automotive parts. The two auto giants also provide financial services to their customer base. General Motors brands include Chevrolet, GMC, Buick, Cadillac, Holden, Open and Vauxhall. Daimler AG brands include Mercedes-Benz, Freightliner, FUSO, Western Star, Thomas Built Buses and BharatBenz.
Daimler AG currently uses the Euro for their reporting currency. The Euro (EUR) since 1992, is the official currency of 19 members of the European Union. The main purpose for the development of the Euro was the creation of an optimum currency area, which allows for an economic efficiency in a geographical region by using the same type of currency. In the preparation of their financial statements Daimler AG complies to IFRS as adopted by the German Commercial Code (HGB). The major difference that we can see in the use of IFRS as opposed to GAAP is the method on which each standard is built. IFRS relies very much on a principle based accounting standards. US GAAP relies heavily on rules based standards. In my opinion, I believe that a principle based standard system will result in a more accurate capturing of the financial condition of the company. I
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