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Lauren Vs Surfstitch

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A comparison of the financial statements of Surfstitch Group Limited (Australia) and Ralph Lauren Corporation (United States of America) 1) Surfstitch and Ralph Lauren are both clothing manufacturing companies, however both companies are of varying size in different countries, this report will compare the accounting standards of both companies. Surfstitch: Surfstitch is an online Australia company that was formed in 2008 and focuses on surfing apparel. The company began when two surfers formed the company after they noticed a distinct lack of range, size and style of surfing clothes in Australian stores. Surfstitch now has a warehouse in Queensland and operates in Asia, Europe and the United States. Over the last ten years the company …show more content…

Ralph Lauren has provided details about their shares, telling the reader about their different tiered shares and how many shares they have currently issued and how many are outstanding. Surfstitch have provided far less detail and have only told the reader the income for their shares. This difference would be because Ralph Lauren get millions in shares whereas Surfstitch only has thousands. The terminology between both balance sheets is very similar with both companies using the same words all throughout their reports. This suggests that Australia and America have very similar accounting standards and it’s up to the individual company to determine how much information they want to provide (information on …show more content…

The first major difference is the name of the two statements, Surfstitch calls in a ‘Consolidated statement of profit or loss,’ whilst Ralph Lauren simply called it, ‘Consolidated statement of profit.’ This difference between the wording shows American companies are very optimistic and downgrade any loss they incur whilst Australian companies are more conservative and accepts they may face a loss. The format of the two reports is relatively similar with both companies showing their total profits and then showing any losses they have sustained. It is clear for the reader to find out the net profit or loss that each company faced over the past financial year. Australia and America have high levels of disclosure which allows people to make informed judgements about the performance of the companies. The main difference in format is that Surfstitch only shows information for 2016 and 2015 whilst Ralph Lauren shows their profit and Loss from 2015, 2014 and 2013. This wider range of information allows potential investors of Ralph Lauren to make informed

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