Accuracy And Procedures Of Starbucks

Critical accounting policies are those that are believed to be most important to the depiction of Starbucks financial position and results. They require the most difficult, subjective and complex judgments. It is often as a result to make estimates about the effect of matters that are inherently uncertain. Starbucks considers financial reporting and disclosure practices and accounting policies quarterly to ensure that the documents provide accurate and transparent information relative to the current economic and business environment. Within the past three years, no material changes to the accounting methodologies have been used to assess the areas discussed. Starbucks fiscal year ends on the Sunday closet to September 30. Fiscal years 2015,

Establishing effective accounting control procedures early on can help create an ethical financial management culture. According to the 10-K for Starbucks, no changes were made in internal controls over financial reporting during the most recently completed fiscal quarter. Accuracy and reliability are paramount in the accounting world. Starbucks internal control over financial reporting include maintaining records that in detail accurately and fairly reflect transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of the financial statements; providing reasonable assurance that receipts and expenditures are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on the financial statements would be prevented or detected on a timely basis. Due to the inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of the financial statements would be prevented or detected. There are several categories designed to prevent fraud and identity errors before they become potential major

The amount of time put into reviewing the company can also be an example of investing. Profits, interest earnings, and appreciation are incomes that result from investing and are the long-term commitment. Trading or speculating are short-term examples and usually deal with heavy turnover which comes with a high amount of risk. It is important to do research in a business and analyze the risk of investing. Fixed income and variable income are two major types of investments. Fixed income refers to an investment that brings in a certain amount of interest income on a regular basis. Bonds and fixed deposits are examples of fixed income. On the other hand, variable income investments refer to business or ownership of property. An investment is an asset or item that is purchased with hope that it will generate income or grow in the