The financial reports of The GAP, H&M, and Inditex are expected to differ significantly in some components because The GAP follows the US GAAP while the others use the IFRS standard. The GAAP, which stands for generally accepted accounting principles, follows the US standardized guideline while the IFRS, which stands for international financial reporting standards, conforms to the international financial principles. According to a report by Ernst and Young (2011), the frameworks vary significantly in the fiscal period requirements, debt presentations, deferred taxes, and liabilities in balance sheets. Similarly, every financial guideline has a unique plan for the income statement classifications. In addition to the differences in the financial presentations of the three companies, the reports differ in the joint venture accounting, equity method investees, and consolidation. A research by Daniels, Radebaugh and Sullivan (2015) showed that GAAP and IFRS differed considerably in the computed net income and shareholders’ equity. In fact, the findings predicted higher profits with IFRS than with GAAP. Based on the research, H&M and Inditex would be expected to post higher profits than GAP because of computational variations in net income and shareholders’ equities. Additionally, the differences in inventory listings and long-lived assets between the accounting standards are expected to change the financial statements of these clothing retailers. The H&M’s accounting standards and practices are founded on the company’s culture, historical acquisition costs, and the characteristics of the European market. H&M recognizes the significance of the Springfield Armory in streamlining accounting standards. H&M produced two accounting reports that demonstrated the influence of SA in establishing a standardized accounting structure and practice. The company associated its accounting structure with policies and practices generated from the Foucaldian perspective of America’s accounting history. In addition, the IFRS standards play a significant role in streamlining corporate objectives to national and international standards. According to PwC (2012), the accounting practices of H&M conform to the IFRS instrumentations. Additionally, the IFRS provide comprehensive guidelines on the process of consolidating financial statements, as well as disclosure of interest rates in multiple entities. The company follows the foreign currency behaviors to readjust their practices according to the receivables and liabilities before the closing date of a session. The company’s accounting structures are based on the industrial work of the 19 th century. Market competitiveness served as a significant cause of controlling prices (Ernst & Young, 2011). In fact, the researcher reported that the cost of production remained under the control of informal employers. The historical and financial attributes influence the contents and implementation of the accounting structures and profiles. The CFO of H&M may be exposed to a balance sheet misrepresentations arising from misclassified assets and liabilities. According to the Ernst and Young (2011) report, IFRS is very specific on deferred tax assets and liabilities. However, the GAAP is not very specific and may cause anomalies in the US statements presented to the Swedish headquarters. Additionally, misappropriation of funds may arise