International Financial Reporting Standards

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Abercrombie & Fitch uses generally accepted accounting principles (GAAP) as the basis for the production of its financial statements. In contrast, Hennes & Mauritz (H&M) uses international financial report standards (IFRS). H&M also utilizes Swedish GAAP. For its annual report, there is no indication of what standard is used, and there are no official financial statements. H&M does not note what auditing standards it uses in its annual report. By contrast, the ANF Form 10-K notes that the company's auditors use the Internal Control Integrated Framework as laid out by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), as noted on page 100 of the 2011 Annual Report. There are significant differences between the annual reports presented on the websites. On a fundamental level, the Abercrombie report consists of the 10-K. This is a formal document with consistent formatting as prescribed by the Securities and Exchange Commission. There is a substantial amount of information contained within this report. The H&M report is the exact opposite. It is an informal report, oriented towards visuals, and does not appear to have a consistent format for financial statements. Ostensibly, the company uses IFRS for the compilation of statements, but those statements do not make their way into the report that the company publishes online. If the company publishes a formal accounting statements, it does not have those readily available. Even for previous years,
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