The main section of NIKE Corporation annual report
Management discussion and analysis of financial condition and results of operation overview
The component provides a framework of organization operations in terms of product provision, the nature of the products provided and the set strategies. The component is important since it provides an overview of financial performance of the organization and its sustainability strategies and measures.
The auditor’s report.
This is a very crucial component of an annual report as information regarding the credibility of the financial statement is explained. The component provides a true and fair view of the organization financial position.
Consolidated statement of Income.
This is basically the performance of the organization in the realization of revenues. It shows the total receipts to the organization and total expenditure incurred by the organization in the respective year.
Statement of financial position
The component specifically shows the financial position of the organization in terms of assets, liabilities, debt and equity.
Cash flows statement.
The statement shows the cash inflow and outflow in the organization.
Factors that influence performance of the NIKE Corporation in the year 2010
The corporation is renowned for the sale of high quality sport products all over the world. The customer confidence created from its selling activity has contributed to the increase in demand in the defined period. Despite a decrease in the total revenue in the year 2010 when compared with the year 2009, the net income has increased. This is brought by the reduction of the total cost, a strategy that is adopted by the management team. In the recent world, sport has become one of the main recreation activities of many individuals. This has also led to the increase in the sale level of the corporation. Similarly, the corporate mission is to develop a global portfolio of sport products as well as incorporating the shareholders wealth maximization objective in the corporation activities. This has raised the cohesion level between the management and the shareholders, an attribute which has led to an increase in the performance of the corporation.
Primary assets held by NIKE Corporation.
The corporation's assets are classified as current and non current assets. Current assets are the assets whose maturity period is within a year. The corporation current assets include cash and equivalents, short term investments, account receivables, deferred income taxes and prepaid expenses. The non current assets held by the corporation include property, plants and equipments, identifiable intangible assets, and deferred income taxes. Their maturity period is over one financial year.
How the NIKE Corporation characterizes its internal control environment.
The internal control environment mainly involves the management style, corporate culture, organization structure and human resource policies. The management of the NIKE Corporation has identified its internal control environment as strong. This is through the establishment of the following control elements. It is the responsibility of every party in the corporation to ensure the vision of the corporation is achieved. The vision is; inspiration and aspiration to every athlete in the world. The board of directors is responsible for the corporate governance in the corporation. This is to ensure that the corporation operations are performed in accordance with the set goals. The corporation has established a code of ethics namely inside the lines that is followed by the employees. It describes the conduct expected from employees.
Reference
SECURITIES AND EXCHANGE COMMISSION. (2010). NIKE, INC. ANNUAL REPORT ON FORM 10-K. 2-79.
