Analyze and compare the financial statements of General Mills Essay Sample

In this instance survey. I will analyse and compare the fiscal statements of General Mills and the Meiji Holdings Company Limited. which are amongst the largest houses in the nutrient industry. I will besides speak about the accounting criterions. the differences between both company’s one-year statements and the differences between Annual Reports. a 10-K and the Corporate Social Responsibility Report. General Mills and Meiji Holdings Company Limited utilizes different accounting criterions. General Mills uses the Financial Accounting Standards Board ( FASB ) which administers criterions known as the Generally Accepted Accounting Principles ( GAAP ) United States ( General Mills. 2013 ) . Meiji Holdings Company Limited utilizes the Nipponese version of the GAAP.

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For General Mills. audits are conducted in conformity with the Public Company Accounting Oversight Board ( PCAOB ) United States. These criterions require that an external hearer programs and performs the audits to do certain that the fiscal statements of the company are free of errors and whether effectual internal control over fiscal coverage is being maintained. The Meiji Holdings Company Limited besides uses outside beginnings to carry on their audits. When looking over the General Mills balance sheet. I notice that the non-current assets are being reported individually from the current assets and the non-current liabilities are reported individually from the current liabilities. In add-on. merely current assets that are expected to be realized within the company’s fiscal twelvemonth are shown. Besides. the company’s hard currency flow statement. hard currency payments and grosss are classified into funding activities. operating activities and puting activities.

When researching the Meiji Holding Companies balance sheet. I noticed that it’s categorized into net assets. liabilities and entity’s assets. These assets are farther divided into fixed assets. deferred charges and current assets. This makes it wholly different from the General Mills balance sheet. The liabilities on the other manus are categorized into fixed liabilities and current liabilities. The net assets comprise of interlingual rendition accommodations. stockholders equity. and stock options. The Shareholders equity consists of exchequer portions. stated capital. retained net incomes and extra paid in capital. The income statement is alone for Meiji Holdings Company limited. The disbursals are classified harmonizing to their nature and the net income is formulated in stairss. This differs from the General Mills company income statement where a multiple measure method is utilised.

For illustration. the cost of gross revenues is deducted from the entire gross revenues. the current gross net income and the current income before income revenue enhancement. An Annual Report is a comprehensive study on a company’s activities throughout the old twelvemonth. Annual studies are intended to give stockholders and other interested people information about the company’s activities and fiscal public presentation. They may be considered as gray literature. Most topographic points require companies to fix and unwrap one-year studies. and many require the one-year study to be filed at the company’s register. Companies listed on a stock exchange are besides required to describe at more frequent intervals depending on the regulations of the stock exchange involved. A Form 10-K is an one-year study required by the U. S. Securities and Exchange Commission ( SEC ) . which gives a full sum-up of a company’s fiscal public presentation.

The difference between a 10-K and an one-year study is that the 10-K is more elaborate. longer and its information demands and format are determined by the SEC. The 10-K includes information such as company history. organisational construction. executive compensation. equity. subordinates and audited fiscal statements. among other information. Companies with more than $ 10 million in assets and a category of equity securities that is held by more than 500 proprietors must register one-year and other periodic studies. regardless of whether the securities are publically or in private traded. If a stockholder requests a company’s Form 10-K. the company must supply a transcript. In add-on. most big companies must unwrap on Form 10-K whether the company makes it periodic and current studies available. free of charge. on its web site.

Form 10-K. every bit good as other SEC filings may be searched at the EDGAR database on the SEC’s web site. Corporate societal duty ( CSR ) is a signifier of corporate self-regulation integrated into a concern theoretical account. CSR policy maps as a constitutional. self-acting mechanism that has concern proctors and ensures its active conformity with the spirit of the jurisprudence. ethical criterions. and international norms. CSR is a procedure with the purpose to encompass duty for the company’s actions and promote a positive impact through its activities on the environment. consumers. employees. communities. stakeholders and all other members of the populace sphere who may besides be considered stakeholders. CSR is titled to help an organization’s mission every bit good as a usher to what the company stands for and will continue to its consumers.

Development concern moralss is one of the signifiers of applied moralss that examines ethical rules and moral or ethical jobs that can originate in a concern environment. Unlike the 10-K and one-year studies that gives fiscal information. corporate societal duty study is designed to pass on a corporation societal duty committedness and its growing and way as a socially cognizant endeavor and has a impersonal impact on fiscal results. Both General Mills Company and Meiji Holdings Company let go of one-year studies and corporate societal duty studies to their stakeholders. General Mills Company is required by jurisprudence to register a 10-k study ( General Mills. 2013 ) .

Below. I’ve prepared a sum-up of fiscal statements from both General Mills and the Meiji Holdings Company to find and compare their public presentation. growing and profitableness. The fiscal statements show that General Mills is the more profitable company of the two with a gross border of 36 % while The Meiji Holdings Company Limited gross border is at 34 % . General Mills runing border is much higher at 16 % than the Meiji Holdings Company Limited at 3 % . From the research. it shows that both company’s grosss increased each twelvemonth. but the income form was a small different increasing in 2011 and 2013 and diminishing in 2012. The size difference between the two companies possibly one of the grounds for the difference in profitableness.

General Mills. ( 2013 ) . Annual Report. Overview and Publications. Retrieved July 19. 2014. from General Mills. Meiji Holdings. ( 2013 ) . Meiji Group. Retrieved May July 19. 2014. from Meiji Holdings Co. . Ltd. : hypertext transfer protocol: //www. meiji. com/english/investor/financial_data/highlight/ Annual study. ( 2014. June 19 ) . In Wikipedia. The Free Encyclopedia. Retrieved July 20. 2014 from hypertext transfer protocol: //en. wikipedia. org/w/index. php? title=Annual_report & A ; oldid=613550769

Wild. J. ( 2008 ) . Fiscal Statement Analysis. McGraw-Hil.


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