Essay: Annual Reporting Cases

Essay: Annual Reporting Cases
03/10/2012 Comments Off on Essay: Annual Reporting Cases Academic Papers on Business Studies,Sample Academic Papers bernard

Urban Outfitters, inc. is big American Corporation dealing with five brands namely BHLDN, urban outfitters, Terrain, free people and Anthropologie. Just like any other type of business, Urban Outfitters has to prepare financial statements. However, it uses a different approach since it has to maintain its good image in the eyes of the competitors and those of the entire public.

Considering the financial statements shown in the book by Libby et al, it is evidenced that the amount of interest paid in cash during the most recent reporting year is not reported. The best reason for this move is the fact that the company does not have to disclose to everybody the amounts of finances borrowed. Showing this amount in the financial statements shows that the company is indebted. This will be a proof to the competitors that it cannot operate without loans.

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