Financial Reporting Problem, Apple Inc., homework help

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Business Finance


Note: The financial statements of Apple, Inc. are presented in Appendix A of Financial Accounting. Instructions for accessing and using the company's complete annual report, including the notes to the financial statements, are also provided in Appendix A.

Complete a 1,050-word summary of findings and recommendations from the following questions:

  • What were the total cost and book value of property, plant, and equipment at September 27, 2014?
  • Using the notes to find financial statements, what method or methods of depreciation are used by Apple for financial reporting purposes?
  • What was the amount of depreciation and amortization expense for each of the three years 2012-2014? (Hint: Use the statement of cash flows).
  • Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased in 2014 and 2013?
  • Using the notes to the financial statements, explain in the summary how Apple accounted for its intangible assets in 2014.

Use the Week 2 Excel® spreadsheet to show your work and submit with your summary.

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Explanation & Answer

Here you go pal. Kindly find attached the analysis and the spreadsheet. Thank you.


Financial Reporting Problem: Apple, Inc.




Long-term assets plays a fundamental role in the performance and success of any
organization. The long-term assets may include intangible assets such as goodwill, tangible
assets such as property, plant and equipment, land as well as lease improvements and among
other assets. Long-term assets plays a key role in expanding the earning capacity of an
organization. These assets are often recorded on a company’s statement of financial position and
categorized as either long-term or non-current assets. Furthermore, depression on such items are
often accounted for to adjust for the value due use or on the basis of time. Other non-current
assets are amortized during reporting as well as impaired for losses. In relation, this analysis
examines the cost and book value of property, plant and equipment alongside other long-term
assets of the tech giant, Apple Inc. This paper further discusses the methods of depreciation
deployed by Apple Inc. to account for its PPE and also discuss the expenses attributed to the
purchase of such assets. In addition, this analysis how Apple Inc. accounts for its intangible

Property, Plant and Equipment
a) Total Cost and Book Value
From Apple’s financial statement, the recorded total cost of property, plant and
equipment for the period September 27, 2014 was $39,015 million. The cost for the financial
year ended September 28, 2013 was $28,519 million. Comparing the two figures for the
respective financial periods shows that the cost of Property, Plant and Equipment (PPE) rose by a
sum of by $10,496 million. This change represents an increase of 36.80% during financial year
2014. Furthermore, the cost of land ...

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