TASK 2. M1: In this criteria we are going to compare the final accounts of two organizations explaining the similarities and differences of “GREENPEACE " and " MICROSOFT " which will be relevant on legislation and the accounting concepts. Microsoft and Greenpeace organizations are both worldwide known business but each have their own path towards their aims and missions. Their financial statements brings the differences but it also brings up the similarities between them: SIMILARITIES “GREENPEACE” and “MICROSOFT” * Both have a big interest in the cash because cash helps them to run day to day expenses such as bills, taxes etc. also cash helps to keep the business stable and run effectively. It may also bring more investors in both organizations- …show more content…
Greenpeace also carries cash investments, property and equipment just in their financial position statement which is the same as Microsoft balance sheet. * Both have cash flow statements and revenue & expense; cash flow statements simply outlines what a non –profit and profit organizations where did they spent its money and where the money came from. Like non- revenue and non –expenses items, in Microsoft dividends paid , debts (loans) and depreciation while in Greenpeace there are investments ,borrowings , loans and depreciation so they have similarities in the cash flow statements. * Both have Notes to financial statements; notes to financial statements helps in clarifying accounting producers used by a company. That information is very important when comparing the financial statements of two companies. * Both organizations have good planning, budgeting and performance measurement. Both organizations operate under the (US …show more content…
Differences between Microsoft and Greenpeace • The two companies Microsoft and Greenpeace operate with its own unique aspects and properties. Compared to the Greenpeace which is a non-profit organization run by a couple of independent groups, Microsoft is a profit organization held by stockholders. • According to the Internal Revenue Service (IRS), Greenpeace is tax-exempt due to its primary mission that is aiming to provide services required by society. In addition, Greenpeace is a fundraising organization that receives funds from individual foundations as well as supporters. However, the organization does not receive money from intergovernmental organizations, governments, corporations or political parties in order to not lose its individuality. • Internal Revenue Service examines on another aspect that Microsoft is the other way round, looking at its primary task which is to gain profit for stockholders of the organization. Thus, the corporation must get taxed. Law corporations of the U.S do not accept paying income tax on overseas profits until the profits are brought into the