Amazon 's Financial Reporting Model Essay

Amazon 's Financial Reporting Model Essay

The company I selected is Amazon, Inc.com and it's considered the "everything store". It supply's consumers with low prices from supplying vendors at a cheaper shipping rate included because of the companies contracts with United States Postal Services and UPS. All companies must follow specific orders and guidelines to do business in the United States. The SEC, or Securities and Exchange Commission, is the government entity that is responsible for looking after the economy by keeping corporations and businesses honest. Each company must file their financial reports to the SEC and have a chance of being audited by the PCAOB, or Public Company Accounting Oversight Board. Amazon Inc. com is one of those businesses. Amazon's financial reporting model has assumptions and principles, there are individuals responsible for overseeing the accounting professions and they must file an annual report as well as a 10–K and 10–Q report, and many disclosures that are available to the public. They base these conditions on how their projections will change in regards to their earnings, cash flow, revenue, and balance sheets. Amazon uses a revenue growth rate, expected tax rate, and gross margin assumption (Harman, 2009). The output of the financial reporting model is driven by these assumptions, using the cash flow and earnings to build figures on the value of Amazon and to make future financial decisions. Management will continue to make the investment, operating, and financial decisions

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