Apple’s and Philips: Financial statement comparisons
Is there a difference in approach to valuation by US GAAP and IFRS? Discuss and note two or three specific differences. In addition, briefly
â?¢ Distinguish between an expense (expired cost) and an asset.
â?¢ Distinguish between current and long-term assets.
â?¢ Distinguish between current and long-term liabilities.
â?¢ Review Apple’s balance sheet and provide two examples of each of the above categories.
â?¢ Discuss retained earnings and how income or loss and dividends affect this account. Review Apple’s retained earnings account and explain how it changes between the two past years.
â?¢ Comment on at least three differences between Apple’s and Philips’ balance sheets.
â?¢ Does Apple or Philips have more debt?
â?¢ Which of the two companies is the bigger one? Explain your reasoning.