ACCT7102: Accounting for the iPhone at Apple Inc- Apple Inc Case Study- Accounting Assignment Help
1. Consider the transaction in which a customer purchases an iPhone from Apple Inc and answer the following questions from Apple Inc’s perspective.
Explain how Apple was required to account for this transaction in its financial statements in accordance with US GAAP in place at the time the case study was written.
Explain the alternative non‐US GAAP accounting treatment of the transaction proposed by Apple at the time the case study was written.
Based on your analysis in (a) and (b) above, provide a reasoned justification for which accounting method best captures the economics of the iPhone.
2. Assume you are assisting a friend with no accounting background to understand the debate around Apple’s iPhone accounting.
Explain to your friend how a change in accounting method by Apple Inc (i.e. the provision of non‐US GAAP supplements), which does not affect underlying cash flows, has the potential to affect firm value. Support your answer with reference to at least three (3) academic research articles.
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