Financial Reporting and Accounting Principles in Amazon

School: Southern New Hampshire University - Course: ACC 610 - Subject: Accounting

Final Milestone Project: Amazon Tenisha Harris ACC 610 Financial Reporting Southern New Hampshire University

Final Project - Amazon2 Amazon Amazon Inc., founded in 1994 by CEO Jeff Bezos, has grown from humble origins in Seattle to become a multinational retailing behemoth. The ecommerce firm began as an online bookshop, but has swiftly expanded to include everything from online retail of nearly anything to the creation and selling of smart home products, food via Whole Foods, online streaming services, and, most recently, healthcare. The firm is always expanding by leaps and bounds, always looking for the next field to go into. Conceptual Framework Accounting principles and the Conceptual Framework are universally applicable to all firms, including Amazon. Amazon follows General Accepted Accounting Principles (GAAP), which are revised on a regular basis by the Financial Accounting Standards Board (FASB). The primary purpose of the Conceptual Framework, often known as "Concept Statements," is to define goals and concepts that will help in the creation of financial accounting and reporting. Concepts Statements are a group of papers that serve as a broad depiction of the fundamentals of assets, liabilities, financial reports, and transactions that should be included and noted in a company's financial statements, as well as how they should be curated (FASB, financial accounting standards board. 2020). In compliance with GAAP requirements, Amazon uses this information to correctly construct its balance sheets, shareholder equity reports, and income statements. All of this is done to allow investors and creditors to correctly measure the company's financial health, make financial decisions based on this information, and compare it to the financial information of other firms.