MBA_503_Milestone3_Rules_of_Financial_Reporting.docx_3_sample_.docx MBA 503: Financial

MBA_503_Milestone3_Rules_of_Financial_Reporting.docx_3_sample_.docx    MBA 503: Financial Reporting and Analysis  Milestone Three: Rules of Financial Reporting  Southern New Hampshire University  In an effort to fully comprehend the financial statements of Starbucks Corp. we need to look at and understand the rules of financial reporting.  Looking at the rules of financial reporting, we need to understand the governmental as well as Generally Accepted Accounting Principles (GAAP) reporting requirements.   The Securities and Exchange Act (SEA) was created in 1934 by Franklin D. Roosevelt in an effort to regulate all aspects of the securities industry, as well as protect the investors, and maintain fair and orderly function of the markets and the transparency of information (sec.gov). The Securities Exchange Commission (SEC) was later formed in an effort to see these regulations. The SEC works with corporations to set guidelines in an effort to ensure financial transparency to curtail fraud and manipulation while reporting financial numbers (sec.gov).   As set out by the SEA, Starbucks Corp is required to disclose its procedures and controls, as well as provide accurate and detailed records of all approved transitions(investopedia.com). With Starbucks being a publically traded company, it is crucial for them to follow the required regulations and GAAP to avoid major violations and monetary fines (sec.gov).  Under Item 9A of the Fiscal Report, we will see œControls and Procedures.  Starbucks internally maintains control of its own reporting in