ACC 403 Case 2
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<strong>ACC</strong> <strong>403</strong> <strong>Case</strong> 2<br />
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<strong>ACC</strong> <strong>403</strong> <strong>Case</strong> 2 Part 1 And Part 2<br />
Part I<br />
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Why is revenue recognition a significant issue?<br />
How do we determine when revenues are recorded for accounting purposes?<br />
Explain the difference between a product and period expense.<br />
Discuss the matching concept as it relates to accounting for revenues and inventory.<br />
Is there a difference in approach to valuation by US GAAP and IFRS? Discuss and note two<br />
or three specific differences.<br />
Part II<br />
Refer to the latest annual financial statements for the two following companies:<br />
Apple: http://investor.apple.com/ and<br />
Samsung: http://www.samsung.com/us/aboutsamsung/ir/newsMain.do. Generally, this<br />
information is found in the Investor Relations area of the website.<br />
Clearly identify the companies, the time period, and include the link to the financial<br />
statements you are analyzing in your report. Next, answer questions below.<br />
<br />
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What accounting conventions do the two companies follow US GAAP or IFRS?<br />
What about auditing standards for the two companies?<br />
Locate the income statement for the past two years for both companies. Prepare a table<br />
comparing five items or more from each statement. Next, comment on the changes from one<br />
year to another. Is the company doing better or worse? Did revenues and expenses increase<br />
or decrease?<br />
Locate the balance sheet for the past two years for both companies. Prepare a table compari<br />
ng five items or more from each statement. Next, comment on the changes from one year to<br />
another. Further, discuss retained earnings and how income or loss and dividends affect thi<br />
s account. Review two companies’ retained earnings account and explain how it changes bet<br />
ween the two past years.<br />
PAPER FORMAT AS FOLLOWS:
Set 1-inch margins on all four sides.<br />
Use 12-point type throughout; don’t use different type sizes.¡<br />
Double-space the text throughout the paper, including the reference page.¡<br />
Do not put extra spaces between paragraphs or between headings and paragraphs.¡<br />
Use italics or bold for emphasis, but use them sparingly or it becomes too distracting for<br />
your reader¡<br />
Must have in-text citations<br />
Must have references!!!<br />
GRAMMAR IS PARAMOUNT<br />
ASSIGNMENT EXPECTATIONS:<br />
It is important to answer the questions as posed. The discussion should be three to five<br />
pages and written in a clear and concise manner. Support your discussion with references<br />
in APA format. You are encouraged to use Excel or other compatible spreadsheet when<br />
computations are involved.