http://investor.apple.com/secfiling.cfm?filingID=1628280-16-20309&CIK=320193
Prepare a report on disclosure issues related to the segment and non-controlling interest information in the SEC 10-K.
Your deliverable should be one pages in length, single-spaced, with double spacing between paragraphs. Use one-inch margins. Font should be 10 –
12 points. Use headings related to topics in our class.
Page count does not include copy and paste text or displays (such as a balance sheet).
Questions to consider
1. The math: explain how you move from the details of a situation to the next level. Each of you will address this question differently. We
are recording the acquisitions and operations of our company. What does this mean, using a specific example?
In business terms, an “Acquisition” implies obtaining another organization, for example, a contender, a provider or a wholesaler. At first, a
securing influences just the monetary record. Let’s assume you purchase out a contender for $200,000. In the event that you pay money, at that
point the money resource account on your asset report shrivels by $200,000. In the event that you obtained the cash, you would make another
$200,000 risk on the monetary record. The benefits and liabilities of the organization you acquired essentially get added to your current
resources and liabilities on your asset report. Any distinction between the net estimation of those benefits and liabilities and the value you
paid for the organization – and there for the most part will be a distinction – additionally goes on the accounting report as an impalpable
resource called “generosity.” At this point, there are no pay proclamation impacts.
Apple’s net sales declined 8% (18.1 billion) in 2016 compared to 2015, decrease in iPhones net sales and the effect of weakness in most foreign
currencies relative to the U.S dollar partially offset by an increase in services. April 2016, Apple declared a important increase to its
capital return program by raising the expected total size of the program from 200 billion to 250 billion through March 2018 which includes
increasing its share repurchase authorization from 140 billion to 175 billion and raising its quarterly dividend from 0.52 to 0.57 per share
2. Visit your SEC 10-K again. Post details from the Notes to the Financial Statement that explain the financial statement line item. Example:
goodwill. What do we know about it? What was its source? How has it changed?
The company does not amortize goodwill or other intangible assets with infinite life. The impairment of goodwill is tested in the 4 quarter
every year and for 2014, 2015 and 2016 no impairment has been recorded. The goodwill is allocated on the basis of reporting units; so far the
company has allocated goodwill to Americas and Europe reporting units. The goodwill in 2015 was $5116 million and increased to $ 5414 million in
2016.
3. Visit your SEC 10-K company. Post concepts that show, from last year to this year, the details we have discussed thus far. Use the
Financial Statements.
Apple’s reportable operating segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific.
Americas net sales decreased during 2016 compared to 2015 due primarily to lower net sales and unit sales of iPhone.
Europe, Greater China and Rest of Asia Pacific net sales decreased during 2016 compares to 2015 because of weakness in foreign currencies
relative to the U.S dollar and a decrease in unit sales of Mac, largely offset by an increase in iPhone unit sales and Services.
Japan net sales increased during 2-16 compared to 2015 due to higher net sales of services and the strength in the Japanese yen relative to the
U.S. dollar.
