Global Business Strategies: Walmart
Walmart is a leading retailer of a variety of goods in the U.S. and other countries in the world. The company was started in 1962 by Sam Walton and has since then grown to be a leading player in the retail industry. It does not only departmental stores but also warehouses. Their main aim is to save customers money through reduced prices of products. This write up explains how the company reports its debt securities and stock investments.
Debt Securities in Walmart are regulated by the Securities Act of 2003. The company makes use of the debt securities in order to achieve short-term liquidity. Moreover, reporting of debt securities is based on the terms and conditions of each series. In other words, different debt securities belong to different series with different terms and conditions. In the financial statements, reporting includes the amount of debt securities being offered, the prices at which they were offered to the public, the currency of denomination, when each debt security matured, variable or fixed interest rates attracted by each debt security and the dates for the payment of premiums. It also includes redemption procedures, tax consequences for each debt security and whether the debt security was listed on any stock exchange or securities; such as seen in Form 10-K of the annual report. The reporting is done in accordance with the requirements of Securities and Exchange Commission.
In most cases, Walmart does not report its investment ventures. Moreover, the company takes into consideration the risks associated with stocks. During the reporting, the company specifies the type of investment it was whether minority, majority or active. In the balance sheet, the investments are reported at cost of acquisition plus cumulative share of the company on investee’s net income minus those dividends received by the investee since acquisition.