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Macy's Accounting

518 Words3 Pages

Macy’s Inc., a renowned American department store chain, is subject to scrutiny not only for its operational performance, but also for its accounting practices. Focusing on evaluating Macy’s accounting policies for the fiscal year ending January 28, 2023, focusing on receivables, inventories, property, plant, and equipment (PP&E), intangibles, liabilities, and revenue recognition. Macy’s Inc. presents its financial statements in accordance with generally accepted accounting principles (GAAP) in the United States. The company’s accounting policies are disclosed in its annual report and provide a basis for understanding how financial transactions are recorded, reported, and interpreted. Macy’s accounting policy or receivables is by recognizing …show more content…

However, this may not adequately reflect the true economic value of the inventory, particularly in unstable market conditions. Given how consumer preferences are ever-changing, along with the emergence of fast fashion, inventory valuation methods that account for real-time market trends could provide a more accurate representation of inventory values. Macy’s could consider using data analytics and forecasting techniques to mitigate risks associated with inventory markdowns. Macy’s depreciates its PP&E using straight-line or accelerated methods over their estimated useful lives. As Macy’s invests in technological upgrades and store renovations to enhance customer experience, traditional depreciation methods may not capture the full value of their investments. Adopting innovative depreciation models that consider factors like future cash flows could help dampen depreciation expenses. The capitalization and amortization of intangible assets impact Macy’s financial statements and profitability. Given the intangible nature of assets like brand reputation and customer loyalty, Macy’s should periodically reassess the valuation and useful life estimates of intangible assets to make sure they properly reflect their economic

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