FR U2DB2 initial

Annual report review
Name:
Instructor:
Annual report review
Apple Inc
The paper seeks to review apple Inc annual report as compared to Standard Register Company and Franklin Covey Company. The three companies are public companies whose preparation of financial statements including annual report is guided by the GAAPs. There are several similarities amongst public companies in preparation of financial statements. Securities and Exchange Commission requires public companies in the United States including, Apple Inc, Franklin Covey, and Standard Register Company to file their financial reports regularly with the commission.
The Apple Inc is a leading American firm headquartered in California, United States of America. The multinational firm was established 42 years ago, and it shares are traded at NASDAQ. It manufactures and sells mobile devices, computers, music players among other items. Apple Inc employs critical accounting policies in preparation of financial statements (“Apple – Annual Report,” 2018). GAAP requires the management of public companies to make known estimates and assumptions. Historical experience is applied in making various assumptions in the financial statement preparations. Under the GAAP principles, the United States monetary system should be used in preparing financial statements. The time period for preparation of financial statements is one year for the three companies. The three companies employ the matching principle in which the accrual basis is used in recording transactions.

Other requirements of financial reporting across industries include long-term asset costing, full disclosure requirements among other accounting policies (“Requirements for Preparation of Financial Statements | KnowledgeBase,” 2018).
Preparation of annual report varies across industries. Some of the items recorded in the service industry cannot fit in the manufacturing industry. Significant differences can be seen in the income statement of Apple Inc as compared to that of Franklin Covey. The differences are as a result of the two firms having different expenses and sources of income. The two firms have different ways in which they operate and generate income. Franklin Covey being a service providing company has low overhead costs, unlike Apple Inc Company which manufactures electronic gadgets. Apple Inc has a higher amount of revenue as compared to the Standard Register and the Franklin Covey Company due to the different level of distribution of its products (“The Difference Between Service and Manufacturing Income Statements,” 2018).
Work cited
Apple – Annual Report. (2018). Retrieved from http://investor.apple.com/secfiling.cfm?filingid=1047469-03-41604&cik=320193
Requirements for Preparation of Financial Statements | KnowledgeBase. (2018). Retrieved from https://knowledgebase.ie/requirements-for-preparation-of-financial-statements/
The Difference Between Service and Manufacturing Income Statements. (2018). Retrieved from http://smallbusiness.chron.com/difference-between-service-manufacturing-income-statements-34551.html