Week 2 team - Write a 1050-word paper discussing how...

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Write a 1050-word paper discussing how differences in the industries and different measurement conventions (IASB and FASB) affect presentations. If one of the companies uses the cash basis of accounting, how would that differ from the accrual basis? If you are satisfied accept it and leave positive. As there is problem in link while uploading file, I will upload file properly when it will work, meanwhile i am pasitng here the ratios and the report. Ratios: NIKE Intel Adamjee Insurance 2007 2007 2007 Nature of business Distributor Manufacturer Service Product footwears Electronics Insurance Country USA USA Pakistan Required Ratios Current raio 3.13:1 2.79:1 1.62:1 quick ratio 2.07:1 2.41:1 NA dupont ratio 13.70% 12.50% 13% Gross profit margin 44% 52% NA net profit margin 9% 18% 45% Assets Turnover 153% 69% 29% Inventoy Turnove 4.32 times 5.47 times NA Account receivable turnover 6.54 times 14.73times 1.6 times Financial leverage 0% 0% 0% Report: 3 companies Comparison of Reporting Differences for 3 companies Abstract The paper describes the difference in reporting requirement under basic accounting convention. Three different companies from different sectors have been selected. They are Intel Corporation, Nike and Adamjee Insurance. Their nature of business is trading, manufacturer and service. Two are USA based company and one is Pakistan based company. Detail Every company has to follow basic generally accepted accounting principle to maintain accounting records and financial reporting. FASB is the primary body to establish GAAP.
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Some of the important GAAP are cost principle, going concern, matching principle, revenue recognition and expenses recognition, conservatism, full disclosure etc. It is possible that due to special nature of business these basic principles may not be applied or requires some changes. Under the conservatism principle, Inventory has to be valued at cost or market value whichever is lower. Inventory should include all cost incurred upto saleable condition of the product as per IAS 2. One of the companies which belong to service industry does not need to take care of the inventory valuation as there is no inventory exists in the service industry. Then we have two
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Week 2 team - Write a 1050-word paper discussing how...

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