he purpose of this assignment is to analyze income statements and calculate ratios in order to summarize the financial performance of a company. The ability to analyze the content of an income statement, profit and loss statement, and statement of earnin

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Company Overview

Amber Scott

Grand Canyon University: ACC-502

July 29, 2020

Introduction

The fortune 500 company selected for the project is Apple, a technology company dealing with iPhone, Mac, iPad, home accessories, and wearables. This paper will provide an overview of Apple, describing relevant information about the company. Will also include the reports Apple uses between IFRS and GAAP. A form-10k and a press release is used to obtain the relevant information.

Company Overview

Apple is a company designing, manufacturing, and marketing PCs, wearables, smartphones, tablets, and sells various related services. Their product items are iPhone, Mac, iPad, Home and Accessories, and wearables. They sell a variety of services, including streaming options, iCloud, among other services. Competitors confront Apple in all its areas of business. Apple has competition from other companies selling PCs and mobile devices designed with other operating systems like windows and android and are at a lower cost. Their services also face competition from other companies that have established the same services as them and other business models providing content to end-users for free. Apple is located in the United States with it headquarter located in Cupertino, Calif. Its market ecosystem is at a global level (Apple Inc., 2019).

Supply of Apple products happens through network carriers (Verizon, Sprint, and others), retailers, wholesalers, and resellers. Apple also markets its products and resells third-party products in its market ecosystem directly to end-users, government, small-scale businesses, and enterprises, among others. The business cycles of apple rely on availability to third-party digital content, which is not constantly available. Apple's future performance relies partly on third party programmers since they believe customer preference depends on the availability of third-party services and software. Services and products of apple are, at times, affected by defects associated with design and manufacturing. Since there is no assurance that the company can always detect the defect, this is marked as a risk (Apple Inc., 2019).

IFRS is based on principles, while GAAP is based on rues. The difference is manifested in the specific details in the Form-10k. Generally, IFRS gives fewer details compared to GAAP, hence Apple is utilizing GAAP or General Accounting Accepted Principles as it's standard for financial reporting. GAAP can be identified in the form-10k as the financial statements provide follow the rules by U.S and exchange commissions (Apple Inc., 2019). Also, GAAP tends to deals with things such as balance sheets, revenue recognition, and classification of items that are available in the Form-10k provided by apple. IFRS, on the other hand, is a principle followed by the European Union and various countries in Asia.

Press Release, (2020), on 30th April 2020, Apple reported a revenue of 58.3 billion dollars in the second quarter, which was an increase with 1% from last year's quarter. Global sales were recorded to be sixty-two per cent of the quarter's revenue (Press Release, 2020). The increase in revenue was reported despite the unprecedented global challenge of Covid-19. The CEO reported that during the difficult time of Covid-19, apple products have been useful in assisting individuals to remain connected, productive, and informed. Apples CFO, Luca Maestri, indicated that Apple is satisfied in their future and that Apple will continue making important investments in their area of business so as to enrich their end-users and establish long-term strategies (Press Release, 2020).

Conclusion

Apple is among the fortune 500 company and is a technology company designing, manufacturing, and selling its products which include, iPhone, iPad, Mac, and various services. By using networks carriers like Verizon and Sprint assist helps with the distrubtion of just some of Apple products other retailers, wholesalers, and resellers also assist with disturbutions of Apple produts. Apple uses GAAP for reporting. Apple has a promising future and has performed well during the period of Covid-19.

References

Apple Inc. (2019, September). FORM 10-K (No. 001–36743). www.sec.gov. https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019319000119/a10-k20199282019.htm

Press Release. (2020, 10th July). Apple Reports Second Quarter Results. https://www.apple.com/newsroom/2020/04/apple-reports-second-quarter-results/.