Starbucks is a brand that generates money from grocery stores, varied convenience chains and quite everywhere beverages are marketed. The company makes majority of wealth from operating its stores (Lang & Stice-Lawrence, 2015). In actual fact, revenue generated for company owned stores can be considered to be four times over and above revenue generated from licensed stores, diverse consumer packaged goods and varied other sources.
Industry and nature of the business
Starbucks Corporation is necessarily an American coffee corporation that operates in the coffee shop industry.
Application of Porter's five forces framework to the specialty coffee retail industry
Starbucks report consolidated financial statements
The company presents consolidated financial assertions during the specified period.
Implication of consolidated financial statements
This refers to the fact that the company presents consolidated financial statement that is delivered by a parent (also referred to as holding enterprise) to deliver pecuniary information regarding economic actions of the entire group (Warren & Jones, 2018).
Financial statements prepared by publicly traded companies for external reporting purposes
Particularly, within 45 days of every quarter-end as well as 90 days of closing of year, these business concerns have the need to present financial assertions with mainly SEC. On the whole, every public corporation has the need to prepare as well as arrange financial assertions for purposes of external reporting at least four times every year.
Potential users of Starbucks financial statements
The potential users of the financial assertions of the firm include stakeholders of financial assertions. These are normally grouped as financiers who are interested in potential profits as well as security of investment (Warren & Jones, 2018).
Things people look for in the financial statements include financial performance, notes to the financial statements, corporate governance statement, corporate social responsibility and many others (Warren & Jones, 2018).
Company that audited Starbucks
The company that audited Starbucks is Deloitte & Touche LLP.
As per the opinion of the auditor, there are consolidated financial assertions that deliver fairly, in diverse respects overall financial position of the overall corporation as well as its subsidiaries
Opinion letters, and reason why the dates after the Starbucks year-end date
The opinion letter was accepted several months after fiscal year end of the firm Stng.arbucks. This is mainly owing to the fact that it takes significant period of time for the assessors that include assessing, on mainly test basis, substantiations supporting total amounts as well as disclosures in the financial assertions (Warren & Jones, 2018). In essence, they also require audit for obtaining reasonable assurance regarding whether effectual internal control over financial reporting was maintained in different material facets. Evaluators also have the need to examine all the facets to be reasonable assured to deliver their opinions and this is why the delay.
Lang, M., & Stice-Lawrence, L. (2015). Textual analysis and international financial reporting: Large sample evidence. Journal of Accounting and Economics, 60(2-3), 110-135.
Warren, C.S. & Jones, J., (2018). Corporate financial accounting. Cengage Learning.