Walmart's Accounting Principles

The CEO and all senior financial officers also have an additional code of ethics. They are responsible for full, accurate, and timely disclosure in reports required to be filed by the SEC. Each member is also required to report any material untrue fact that comes to their attention or any deficiency in the design/operation of internal controls. Each member must report any violation of their code of ethics or any violation of other laws, rules, or regulations (Walmart 9). This additional codes of ethics is important because it holds all of the executives accountable for their actions. This should aid in preventing fraudulent reporting by management because this code can be cited when looking at disciplinary action.

To understand the future opportunities for Wal-Mart is essential to discover the strengths and weaknesses of the company before. The model applications purchasing trends of customers, technological changes and trends in the market and how the company can take care of all these will help you assess the potential of the company. The evaluation of the strengths of Wal-Mart can lead to different opportunities and also able to create new ones. Other opportunities can be created by removing several weaknesses.

The AICPA published the generally accepted auditing standards (GAAS). GAAS are those guidelines which auditors must follow while conducting an audit of a company's financial statements. It must also be stated in the audit report that the audit was conducted following GAAS.

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).

WalMart is the worlds' largest retailer, over the last five years (2007 - 2011) the firm has gown and increased in size, but the firm has also faced challenges. Looking at the performance of the firm over this period it is possible to consider the way that the firm has evolved and consider the influences that have impacted on the firms' results as well as the way it has responded.

Retail industry has gradually become the second largest industry, in terms of employment rates and establishments in the united states, it is the leading industry.it is estimated to be generating approximate of $5 billion annually in retail sales. For example, Wal-Mart is the leading retail shop in the world. It has an annual income of $312 billion and has a workforce of around 1.3 million in the united states and internationally it has more than 400,000 associates. It is an international corporation that was established in 1962. It controls a larger market of the retail industry, this is by their widespread chain of grocery stores, supermarkets and department stores.

We will also look at their business objectives or as Wal-mart calls them – “comparable store sales”, where they measure the sales on a like for like basis from the previous year. Included will be Wal-Mart’s sustainability report, and Wal-Mart’s ethical statement.

If all tests are taken, I will substitute the grade on the Final Exam for the lowest of the three test grades in computing the grade for the course (assuming this improves the grade for the course). The Final Exam must be taken. Remember that the Final Exam is cumulative (covers all material in the course).

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.

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 arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

To be the world 's largest low cost store that carries all types of merchandise for all possible consumers.

Like all departmental and/or discount stores, Wal-Mart's strategies are focused around achieving the goals such as building a large and strong customer base, under-cutting competitors, and organization of its supply chain in the most efficient and effective manner and above all, market growth.

Over the past twenty years one company has dominated the discount retailer market. It has been hailed as the most admired company in America twice in the past five years by Fortune magazine. As of 2006 the company employed 1.6 million people that worked in one of their 6200 facilities worldwide. Despite this company’s unmatched success, it has been demonized by many in American culture, often being depicted as a destroyer of small business and the symbol of corporate greed. The company that I am referring to is Wal-Mart. No matter if you are an advocate or adversary of Wal-Mart and their business model, one thing must be mutually understood: They have mastered

Wal-Mart’s primary competition in US includes department stores of the likes of Target and Kmart. Costco offers competition to Sam Club format of Wal-Mart. In niche small markets, dollar stores are offering strong competition to Wal-Mart.