Disclosure Analysis Paper
University of Phoenix
ACC422 / Intermediate Financial Accounting II
August 23, 2010
Disclose Analysis Paper
The consolidated financial statements include the accounts of Wal-Mart Stores, Inc. and its subsidiaries. Significant intercompany transactions have been eliminated in consolidation. Investments in which Wal-Mart has a 40% to 60% voting interest and which Management control are accounted for using the equity method.
The management at Wal-Mart has developed and maintains a system of internal and disclosure controls, including an extensive internal audit program. Those controls are designed to provide reasonable assurance that the Company's assets are protected from improper use and that Wal-Mart's accounting records provide a reliable basis for the preparation of financial statements. They continually review, improve and modify their systems and programs in response to changes in business conditions and operations and on the recommendations that are made by Wal-Mart's internal and external auditors. They believe that the system of internal and disclosure controls provides reasonable assurance that Wal-Mart's assets are safeguarded and that the financial information disclose is reliable.
Wal-Mart considers investments with a maturity of three months or less when purchased to be cash equivalents. The majority of payments due from banks for third-party credit card, debit card and electronic benefit transactions (EBT) process within 24-48 hours, except for transactions occurring on a Friday, which are generally processed on Monday. All credit card, debit card and EBT transactions that process in less than seven days are classified as cash and cash equivalents. Amounts due from banks for these transactions classified as cash totaled $866...