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Part One
Generally Accepted Accounting Principles (US GAAP) are the principles and standards of accounting, which are used in the United States and some other countries. It should be noted that US GAAP differ from the other accounting programs, in particular IFRS, by the detailed regulation of the transaction records of some or the other practical situations. These accounting rules are very important for the accounting as guidance. They actually help to prepare, demonstrate and report financial records and reports. A wide variety of organizations are united under these rules. Among them it would be important to mention non – profit organizations, publicly traded companies, governmental institutions and privately owned companies. It should be taken into consideration that GAAP also includes accounting related law, local Accounting Framework, Accounting Standard and rules. Importance of US GAAP to the financial statements is in the fact that they help to follow to the concrete detailed principles of fulfillment.

International Accounting Standards (IFRS) could be generally regarded as documentaries that unite a number of standards and interpretations, which regulate the rules of financial statement, which is needed for the outer users and they could take economical decisions according the companies and/or corporations. IFRS differently from the particular national rules, dealing with the providing of financial statements are representing standards, based on principles, but not on the strict rules, got be followed. Their core idea and main value for the accounting in lying in the fact that reporters in any practical situation could use the principles, but not try to find the ways to figure out from the strict rules, trying to find the way to overcome certain basis statements. Among the most important principles’ it would be essential to mention: accrual basis), going concern), prudence), relevance) and a number of the others that strongly relate to the accounting standard. The importance of IFRS to the financial statements lies in their liability to the fulfillment of the statements.

Liquidity in general is regarded to as an ability of the business institution (firm, company or corporation etc.) to repay obligations and so called short term debts. Under the short time investigators understand one year or even less. It won’t be a secret that liquidity is very important in accounting, as it actually demonstrates the current state of things within the corporation, which is strongly dealing with the business institutions’ effectiveness and profitability. Liquidity importance to the financial statements is in the fact that it reflects current financial situation at the company.

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Part Two
Comparing the two companies United States based Dole and Switzerland based Nestle it would be essential to note that both companies are international and successfully sell their production worldwide. They both belong to the food industry; hence they occupy different spheres of the food industry. Nestle released their annual report especially its financial statement according to the IFRS rules and Dole used typical for the United States area US GAAP. It should be essential to noted that both companies used different guidance for completing the reports that is why it would be not an easy task to compare and contrast the information they provided within the pages of the reports.
To begin with analysis of financial statements it would be essential to focus on the formatting of the balance sheet. Nestle put the balance sheet of their company on the separate page and placed the necessary data into the table of contents. The company is demonstrating accuracy of presentation the different financial and statistical data that could be interested for the investors. The whole balance sheet is divided into the three sections: Current assets, Non-current assets, Total assets. Hence the balance sheet is represented on the national currency, which could create certain difference in calculation for the international investors. Each paragraph is subdivided ion different items, which reflect financial statement of the company
The Dole demonstrate pretty different attitude to the balance sheet. It could be found in the middle of the report, in the issue called Selected Financial Data. The Balance sheet is not subdivided on the certain paragraphs, but directly shows the financial situation of the company due the items in numbers. It won’t be an easy task to find it in the annual report, which enumerates 155 pages. The currency is United States dollars, which is universally spread. This makes calculations for the international investors easier than at Nestle’s.
The both companies did not devoted much attention to the income statement and it was not placed in the table of contents. It was numerously mentioned in the both reports (more in Nestle’s as the whole analytical data, provided within the annual report was dealing with the income statement of the company). Hence there were observed two tables that demonstrated the income statement. Unfortunately the Dole report based on the US GAAP, demonstrated wide spread of the data, dealing with the income statement through the annual report. Nestle annual report mentioned the income statement many times within the p-ages of the annual report. The same time the two tables clearly reflected and revealed the necessary data, which is demonstrated the situation with the income statement of the company. Such a severe difference between the two companies does not make the annual report of Dole clearer to the investors and accountants and huge spread of information makes it difficultly to find an understand.
Cash flow statements are clearly provided by the both firms. Nestle added spate document, which clearly demonstrated The Statement of Cash Flows, which occurred in the company through the past year. Dole Included several tables which also perfectly revealed the situation with the cash flows of the company. Actually, dealing with the both reports it would be essential to note that the one formed due the IFRS is better planned than the Dole’s formed with the help of US GAAP, even it is including all the necessary data. But it should be noted that there are several advantages at the U GAAP report. It demonstrated all the numbers in international currency and included all the analyzed parts, even sometimes they were hard to find. Swiss report, required additional information.
Personally I think that the Cash from Operating Activities is more important for the both companies. Both companies in their reports demonstrated the importance of this issue above the Net income and it is actually not surprising as they are working in highly competitive market, which supposed huge competition from the local companies on the international market. It should be noted that both companies perfectly revealed all the necessary information in their financial statements and demonstrated perfect understanding of the accounting side needed for investors.