Can someone please help me with this, I need this information about amazon? Acco
ID: 2537388 • Letter: C
Question
Can someone please help me with this, I need this information about amazon? Accounting Analysis: Do the accounting practices adopted by the company generally reflect an accurate picture of the economic performance of the company? Did your research find any public announcements of restatement of earnings or other financial statements that would indicate that the financial statements may be of dubious value? This can be done by reviewing the company's 8K filings with the SEC (a mandatory requirement for this paper). These filings can generally be found on the company's website under Investor Relations - SEC filings.
Explanation / Answer
Solution: Generally, the Amazon company is well known for demonstrating good accounting recording and reporting practices and experts have told that due to the same fact the company's share is grown three times in last five years.
There is one strong evidence about Amazon regarding there capital lease investment which they have made in 2015. In case of capital expenditure decisions, the companies can manipulate cash flows and return on capital employed on the basis of various probabilities.
The street journal shares the valuable information about the Amazon's capital lease investment. According to the research literature, it was revealed that the Amazon had shown lesser cash flows and return on capital in SEC filings than actual results which are against the element of validity, reliability, and transparency of financial statements.
Many times, companies use to show fewer earnings and returns with an intention to pay less dividend to investors as well as to keep their share prices intact which may be affected otherwise due to less payment of dividend.