Ford vs. Toyota
Ford Motor Company is the second-largest automobile company in the world. Ford's main focus is automobiles; however, they also operate in Ford Credit and Hertz Corporation. Ford also has controlling interest in Mazda Motor Corporation. Ford was established June, 1903; in an old wagon factory in Detroit Michigan. In 1903, Ford began production on a two-cylinder, 8 horsepower called the Model A. They produced a total of 1,708 of these cars in their first year of operation.
Toyota Motor Corporation was Japan's largest car company. Toyota ranked the world's third largest by the year 2000. The company could produce near five million car units annually in the 1990s and controlled approximately 10 percent of the global market.
…show more content…
In the past, countries like Japan have held their companies accountable to local GAAP, but since the late 1990's have been requiring some companies, like Toyota, to more internationally accepted standards based on European and U.S. GAAP (Business Accounting, 2006). Although Toyota's format may be different from that of Ford, the top of Toyota's financials read, "All financial information has been prepared in accordance with accounting principles generally accepted in the United States of America" (Toyota, 2007). Toyota may use internal accounting methods that vary from U.S. GAAP, but reports for the public are displayed in the U.S. GAAP. An international company, like Ford or Toyota, is sensible to use a transparent and comparable set of GAAP, like those set by the FASB in the United States. Format and currency may vary in the companies' financial records, but computations and definitions are common to both sets of documents, making the reports more usable for investors. Both companies with strong accountability, Ford and Toyota, have been or are automotive powerhouses in regards to their accounting standards. Having to stand up to accounting standards set by individual countries, the FASB, and the IASB, both companies have to be thorough and accurate in order to provide the best information for users of their financial information. Internationally renowned automotive companies must hold fast to only the most