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Dennis stovall: Toyota Corp. case study
- 1. Case Study | Part 1 Dennis Stovall Kaplan University GB 518- Financial Accounting Principles and Analysis Professor: Wendy Walston Achilles January 2, 2014 THE TOYOTA MOTOR CORPORATION
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- 14. References Accounting Age Reporter.(n.d.)Subjects: ACCOUNTING firms; MEETINGS; SUBSIDIARY corporations; TOYOTA Motor Corp.; CHUO Aoyama PwC (Company); Offices of Certified Public Accountants; Offices of accountants; Other Accounting Services; Corporate, Subsidiary, and Regional Managing Offices. Retrieved from Kaplan University Library. Cortez, Michael Angelo A.; Penacerrada, Neil T. Journal of International Business Research. Jun 2010 Supplement, Vol. 9, p113-140. 28p. 2 Charts, 6 Graphs. Retrieved from Kaplan University Library. Hutchinson, R. Liao, K. Management Accounting Quarterly. Autumn 2009, Vol. 11 Issue 1, p27-35. 9p. 2 Charts, 1 Graph. , Database: Business Source Complete. Retrieved from Kaplan University Library Oreshko, D. (2011) Toyota History. Open Car history Retrieved from http://www.history- car.com/2011/11/21/Toyota-history/ Toyota Motor Corporation (2005). FY 2003 Q3 Financial Results: three months ended December 31, 2002. Retrieved from http://www.toyota- global.com/investors/financial_result/2003/pdf/q3/Presentation.pdf
Editor's Notes
- The Toyota Motor Corp. is one of the largest-’top twenty’- automobile manufacturing companies in the world by revenues (Oreshko, 2011). TMC has over 520 incorporated subsidiaries and the corporations accounting tasks are managed by PricewaterhouseCoopers As a general rule the Toyota Motor Corp. enlist the services of PwC affiliate Chou Aoyama for all of its ongoing internal auditing requirements (Accountancy Age Reporter ,n.d.).
- The Toyota Motor Corporation officially began in 1933 when an automobile manufacturing department was added to the textile factory, formally’-automatic loom works’-belonging to Sakitchi Toyoda (Oreshko, 2011).
- Toyota Motor Co. ltd. officially became its own entity in 1937 when the ‘car department’ was made a separate legal entity apart from the- automatic loom works. The company has seen prosperous and well as diminished product sales over the years since it first began (Oreshko, 2011). .
- The business was initiated into the manufacturing industry by Kirchiro Toyoda who was Sakitchi eldest son. The plan to build quality cars so that Japan could make its mark on the automobile industry was Toyoda’s primary goal in 1934.
- During the first years of 1950 the company devised a revolutionary’ lean production management system’ that incorporates methods to improve production through more efficient inventory control measures. This innovation would be copied by numerous manufacturing companies the world over, the system was known as -‘Kanban’- which translates into, Just in Time (Oreshko, 2011).
- The first years of Toyota’s sales to the U.S. were met with no real success despite the company’s increased R&D efforts which included the establishment of a U.S. based sales division called Toyota Motor Sales, USA. The early years of 1950 also saw the passing of the company’s founder Kirchiro Toyoda.
- In 1961 the Toyota Company, still intent on breaking through the U.S. sales barriers, managed to bring into development a small economical passenger vehicle that proved to be a big success. The car was named the Toyota Corona and between it and its popular predecessor the ‘Publica’ it paved the way for Toyota’s ultimate small car manufacturing achievement, e.g. ‘The Toyota Corolla’ which proved to be a small car success story for the company -world wide- from that point on (Oreshko, 2011).
- The Toyota Camry which is an automobile that has seen vast improvements in technological engineering and design innovations since its inception in the early 1980’s, has helped to solidify Toyota’s position as the number one Japanese car manufacturer in the world from that point on (Oreshko, 2011).
- The Toyota Motor Corp. relies upon information provided them through their interim financial summary statements as recommended to them by their respective auditor’s authorization and consent. While also maintaining that said statements are accurate and conform to the specified guidelines under the requirements set by Japan GAAP (Toyota Motor Corporation ,2005).
- The Toyota Motor Corporation uses both the cost accounting method and the accrual based accounting method. The cost based accounting method is used throughout Toyota’s manufacturing production activities. This makes abundant sense due to the intricacies involved with respects to being a world leading ‘-lean practice’- manufacturer (Hutchinson & Liao, 2009).
- The Toyota Motor Corporations management is responsible for maintaining effective internal controls over the company’s preparation of financial statements as well as the reliability of all financial statements for external uses - in accordance with U.S. GAAP. This includes accurate maintenance-that reflects in good detail-all financial transactions as well as the disposition of Toyota’s assets.
- Further internal controls provide for assurances that Toyota’s receipts and expenditures have been authorized through the company’s managers, and directors and that they are analyzed and recorded in accordance with U.S. GAAP. Provisions for internal controls concerning the timely detection of unauthorized acquisition, use and disposal of Toyota's assets are also in effect.
- The Toyota Motor Corp. has adopted an accountability method known as-’environmental accounting', which assures the public that a fiduciary commitment will be embraced by Toyota through activities that allocate resources and manpower efficiently while insuring the public that cost management principles will be upheld. It is within the context of this type of CSR activity that the Toyota Motor Corporation established-for disclosing purposes- annual fiscal year accounting reports (Cortez & Penacerrada, 2010, p.118).