a company's fiscal year must correspond with the calendar year.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. The 2003 Plan is a shareholder approved plan that provided for broad-based equity grants to employees, including executive officers. The 2003 Plan permitted the granting of incentive stock options, nonstatutory stock options, RSUs, stock appreciation rights, stock purchase rights and performance-based awards.

Balance sheet substantiation is an important process that is typically carried out on a monthly, quarterly and year-end basis. The results help to drive the regulatory balance sheet reporting obligations of the organization. Historically, substantiation has been a wholly manual process, driven by spreadsheets, email and manual monitoring and reporting.

a company's fiscal year must correspond with the calendar year.

Accumulated depreciation is shown on the balance sheet as a subtraction from the cost of an asset. A classified balance sheet organizes assets and liabilities into important subgroups that are not found on an unclassified balance sheet. Adjusting entries are necessary so that asset, liability, revenue, and expense account balances are correctly recorded.

For RSUs, the Company receives an income tax benefit upon the award’s vesting equal to the tax effect of the underlying stock’s fair market value. The Company had net excess tax benefits from equity awards of $620 million, $379 million and $748 million in 2017, 2016 and 2015, respectively, which were reflected as increases to common stock. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement a company’s fiscal year must correspond with the calendar year. line item to which the derivative relates. As a result, the Company recognized a gain of $20 million in net sales, a loss of $40 million in cost of sales and a gain of $606 million in other income/, net for 2017. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period.

Accounting 210 > Chapter 3 Self Test > Flashcards

A corporation with a March 31 fiscal year-end may also file a corporate income tax return, effective March 31. Operating cycle knowledge is essential for budgetary planning because the cycle represents the full-time period for which CARES Act the firm has invested in inventory, but not yet received payment for the finished goods. For this length of time, that is, the firm must be able to fund inventory storage, handling, manufacturing, sales operations, and shipment.

As of September 30, 2017 and September 24, 2016, $252.3 billion and $216.0 billion, respectively, of the Company’s cash, cash equivalents and marketable securities were held by foreign subsidiaries and are generally based in U.S. dollar-denominated holdings. The Company may also enter into non-designated foreign currency contracts to partially offset the foreign currency exchange gains and losses generated bookkeeping by the remeasurement of certain assets and liabilities denominated in non-functional currencies. To help protect the net investment in a foreign operation from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward and option contracts to offset the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates.

For Accounting Purposes

Our responsibility is to express an opinion on these financial statements based on our audits. The Company has entered, and in the future may enter, into accelerated share repurchase arrangements (“ASRs”) with financial institutions. In exchange for up-front payments, the financial institutions deliver shares of the Company’s common stock during the purchase periods of each ASR.

a company's fiscal year must correspond with the calendar year.

Officer’s Certificate of the Registrant, dated as of August 18, 2017, including form of global note representing the 2.513% Notes due 2024. Officer’s Certificate of the Registrant, dated as of June 20, 2017, including form of global note representing the 3.000% Notes due 2027. Officer’s Certificate of the Registrant, dated as of March 3, 2017, including form of global note representing 4.300% Notes due 2047. Officer’s Certificate of the Registrant, dated as of June 22, 2016, including form of global note representing 4.15% Notes due 2046.

How To File A Tax Extension

Should future facts and circumstances change, the Company’s ESPs and the future rate of related amortization for unspecified software upgrades and non-software services related to future sales of these devices could change. Factors subject to change include the unspecified software upgrade rights and non-software services offered, the estimated value of unspecified software upgrade rights and non-software services and the estimated period unspecified software upgrades and non-software services are expected to be provided. In May 2017, the Company’s Board of Directors increased the total capital return program from $250 billion to $300 billion, which included an increase in the share repurchase authorization from $175 billion to $210 billion of the Company’s common stock. Additionally, the Company announced that the Board of Directors raised the Company’s quarterly cash dividend from $0.57 to $0.63 per share, beginning with the dividend paid during the third quarter of 2017.

  • The debt-to-equity ratio (D/E) indicates the relative proportion of shareholder’s equity and debt used to finance a company’s assets.
  • In the United States, for instance, taxpayers must file by April 15 taxes owing for the calendar year ended three and a half months earlier.
  • The VAR model consisted of using a Monte Carlo simulation to generate thousands of random market price paths assuming normal market conditions.
  • The 2003 Plan permitted the granting of incentive stock options, nonstatutory stock options, RSUs, stock appreciation rights, stock purchase rights and performance-based awards.
  • We have audited Apple Inc.’s internal control over financial reporting as of September 30, 2017, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“the COSO criteria”).
  • The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments.

66) Asset and liability balances are transferred from the adjusted trial balance to the income statement. 56) Net income for a period will be understated if accrued revenues are not recorded at the end of the accounting period. 17) The accrual basis of accounting recognizes revenues when cash is received from customers, regardless of when the goods or services are provided. 15) The cash basis of accounting is a system in which revenues are recorded when earned and expenses are recorded when incurred. In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid.

Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. The Company’s exposure to changes in interest rates relates primarily to the Company’s investment portfolio and outstanding debt.

21) Prior to recording adjusting entries at the end of an accounting period, some accounts may not show correct balances even though all transactions were properly recorded. 11) The cash basis of accounting commonly increases the comparability of financial statements from period to period. 9) The expense recognition principle does not aim to record expenses in the same accounting period as the revenue earned as a result of these expenses. Book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset.

When To Consider Taking Out A Personal Loan For Your Business

Historically, consolidation in this market has resulted in larger competitors. Competition has been particularly intense as competitors have aggressively cut prices and lowered product margins. An increasing number of internet-enabled devices that include software applications and are smaller and simpler than traditional personal computers compete for market share with the Company’s existing products. The Company’s financial condition and operating results also depend on its ability to continually improve the Mac platform to maintain its functional and design advantages.

Earned Revenues

60) A company performs 20 days of work on a 30-day contract before the end of the year. The total contract is valued at $6,000 and payment is not due until the contract is fully completed.

As another example, the best time for a luxury resort to report earnings is probably after vacation season, so it may choose a fiscal year-end of September 30. Fiscal year-end refers to the completion of a one-year, or 12-month, accounting period. Once companies choose its fiscal year-end—typically when they are first incorporating or forming their company—it is required to stick with it year to year.

Disclosure of accounting policy for its derivative instruments and hedging activities. The Company capitalizes purchased and internally developed software and amortizes such costs to expense on a straight-line basis over two to five years.

18) The accrual basis of accounting recognizes expenses when cash is paid. 12) Under the cash normal balance basis of accounting, no adjustments are made for prepaid, unearned, and accrued items.