ACC 403 Case 2 Part 1 And Part 2
• Why is revenue recognition a significant issue?
• How do we determine when revenues are recorded for accounting purposes?
• Explain the difference between a product and period expense.
• Discuss the matching concept as it relates to accounting for revenues and inventory.
• Is there a difference in approach to valuation by US GAAP and IFRS? Discuss and note two or three specific differences.
Refer to the latest annual financial statements for the two following companies: Apple: http://investor.apple.com/ and Samsung: http://www.samsung.com/us/aboutsamsung/ir/newsMain.do. Generally, this information is found in the Investor Relations area of the website.
Clearly identify the companies, the time period, and include the link to the financial statements you are analyzing in your report. Next, answer questions below.
• What accounting conventions do the two companies follow US GAAP or IFRS?
• What about auditing standards for the two companies?
• Locate the income statement for the past two years for both companies. Prepare a table comparing five items or more from each statement. Next, comment on the changes from one year to another. Is the company doing better or worse? Did revenues and expenses increase or decrease?
• Locate the balance sheet for the past two years for both companies. Prepare a table comparing five items or more from each statement. Next, comment on the changes from one year to another. Further, discuss retained earnings and how income or loss and dividends affect this account. Review two companies’ retained earnings account and explain how it changes between the two past years.
PAPER FORMAT AS FOLLOWS:
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