The Financial Results Of The Gap, Inditex And H & M Essay

720 Words May 24th, 2015 3 Pages
GAAP is set of procedures of financial statements about economic measurement, disclosure, preparation and presentation. It is amended when need arises, which is determined by the particular country legal policy and tax guidelines.
If an investor wants to compare the financial results of the GAP, INDITEX and H&M which are prepared according to different GAAP, he is unable to find the accurate and appropriate as well as consistence financial result.

As H&M reported the financial result compliance in Swedish GAAP, INDITEX in Spanish GAAP and GAP in U.S. GAAP, where Swedish accounting has less in transparent in its orientation in creditors, government and tax authorities , U.S. GAAP provides transparency to potential investors , creditors and other users in making rational investment, credit, and other financial decisions (Daniels, Radebaugh & Sullivan, 2015).But in Spanish GAAP after analyze there is an effect on the gap between firms’ book and market values and the impact on the book-to-market ratio, by extension.

IFRS has some key differences from the U.S.GAAP. IFRS is considered more of a "principles based" accounting standard in compare to U.S. GAAP which is measured more "rules based." IFRS, questionably, represents and captures the economics of a transaction better than U.S. GAAP. Like treatment in intangible assets cost and inventory cost. But in Form 20-F report, the cash at the end was the same under U.S.GAAP and IFRS.
Hence, it is expected that U.S.GAAP used by…

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