Essay Example on We will look at Starbucks Financial Reporting

We will look at Starbucks Financial Reporting as it relates to the Financial Accounting Standards Board s FASB generally accepted accounting principles GAAP and submitted under the Securities Exchange Act of 1934 and in compliance with the Sarbanes Oxley Act of 2002 Financial reportings primary objective is to provide useful information for decision making Financial reporting is an integral part of business for stakeholders investors and management alike Control Procedures are designed to prevent fraud and clerical errors that may discredit the accuracy of a company's financial statements Strict internal controls also reduce losses from theft of company assets and identify low performing employees Internal controls should be implemented before any financial information is reported to external auditors lenders or investors Internal controls insure that amongst employees there are segregation of duties limitation to access authorization record keeping and verification As stated on page 86 of Starbucks 2017 annual report during the fourth quarter an evaluation was performed under the supervision and with the participation of management including the chief executive officer and the chief financial officer of the effectiveness of their disclosure controls and procedures as defined in Rules 13a 15 e and 15d 15 e under the Exchange Act 

They concluded that the current disclosure controls and procedures were effective as of the end of the period covered by this report October 1 2017 sec gov Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect their transactions providing reasonable assurance that transactions are recorded as necessary for preparation of their 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 their financial statements would be prevented or detected on a timely basis sec gov Segment information requires companies to provide information about the different types of business activities in which an enterprise engages and the different economic environments in which it operates Providing this information helps external users to better understand the company's performance assess its prospects for future cash flows and make more informed decisions about an organization Management defines operating segments as an integral part that engages in business activities which generates revenues as well as incur expenses has operating processes regularly reviewed by the Chief Operating Decision Maker CODM and has definitive financial information available Page 84 Note 16 of Starbucks 2017 Annual report have four reportable operating segments 1 America's inclusive of the U S Canada and Latin America 2 China Asia Pacific CAP 3 Europe Middle East and Africa EMEA and 

Actual results may differ from these estimates and assumptions sec gov Fair Value and Investments Note 4 Fair Value Measurements Excerpt from page 67 of Starbucks 2017 Annual report sec gov Assets and Liabilities Measured at Fair Value on a Recurring Basis in millions Fair Value Measurements at Reporting Date Using Balance at Oct 1 2017 Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Assets Cash and cash equivalents 2 462 3 2 462 3 Short term investments Available for sale securities Agency obligations 7 5 7 5 Commercial paper 2 0 2 0 Corporate debt securities 49 4 49 4 Foreign government obligations 7 1 7 1 U S government treasury securities 81 4 81 4 Mortgage and other asset backed securities 2 0 2 0 Certificates of deposit 2 3 2 3 Total available for sale securities 151 7 81 4 70 3 Note 6 Equity and Cost Investments in millions excerpt from page 70 of Starbucks 2017 Annual Report Oct 1 2017 Oct 2 2016 Equity method investments 432 8 305 7 Cost method investments 48 8 48 8 Total 481 6 354 5