Consolidated Of Financial Analysis Paper

II. Consolidated of Financial Statements

A. Corporate Structure

A corporate structure consists of various departments that contribute to the company's overall mission and goals (Advanced Accounting, 2015). Based on research it is safe to say that Amazon can be classified as hierarchical structure, which is common amongst large corporations; it is a pyramid-like organization, containing a direct chain of command from the top to the bottom. Amazon’s Senior management team reports directly to CEO Jeff Bezos (Dudovskiy, 2017). This type of structure is used because Bezos makes all final decision, which stem from information gathered by the Senior management team. There’s a very clear and concise reporting style and authority being since employees

The overall goal is to manage the company, whereas a person must report to another, such as having an employee to supervisor or management communication chain. The geographic division characteristic is straight forward as well, is set to help the company to address issues or concerns associated with each geographic region, and to recognize the many differences amongst regional markets. The geographic divisions that Amazon operates are obviously North America and international (Meyer 2017). From the consolidated viewpoint Amazon has a direct ownership, which means that one owns something. For example, if one owns 5% of stock in a company, then they are a direct owner. As oppose to an indirect owner, which has the ownership through another entity. Amazon has a direct ownership because it does not have any other entities within the company. The reason for this is because, Jeff Bezos directly owns Amazon, he did not retain the company from anyone else; he started the business on his own and without any

A company can obtain several income tax benefits from consolidating their financial statements. Some benefits include offsetting the profits of one company or division/segment against losses of another; netting out capital gains and losses. In which, if one division or segment suffers a major loss, it can be diminished by another one that is profiting. Also, there are no tax on intercompany distributions, which is a huge win for Amazon being since they distribute a great amount of goods. Lastly, any unused foreign tax credit by one division can be used by the other affiliates within the group, which is another huge win because Amazon operates internationally just as much as domestically. Overall, consolidated financial statements are set up in a way to make a business look likes it’s doing better than it actually is. In the case of Amazon, a company that is thriving in every aspect possible, the consolidated financial statements are making them look even more appealing to their shareholders, and creditors than they already are without the