Is there a difference in approach to valuation by US GAAP and IFRS? Discuss and note two or three specific differences. In addition, clearly

Distinguish between an expense (expired cost) and an asset.

Distinguish between current and long-term assets.

Distinguish between current and long-term liabilities.

Review Apple’s balance sheet and provide two examples of each of the above categories.

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.

Comment on at least three differences between Apple’s and Samsung’s balance sheets.

Does Apple or Samsung have more debt?

Which of the two companies is the bigger one? Explain your reasoning.

Benedicto, M.S. (2008) Introduction to Financial Accounting. IE Business School. This is a multimedia presentation reviewing the four financial statements. The information is also available in a PDF file. Click on “accounting equation” tab. Retrieved from http://openmultimedia.ie.edu/openproducts/financial_accounting/financial_accounting/frames.html

Edwards, J.D. & R.H. Hermanson (2007) Accounting Principles: A Business Perspective. Volume 1 Financial Accounting. The Global Text Project, pp. 395 – 411, 439 – 456 and 559. Retrieved from http://dl.dropbox.com/u/31779972/Accounting%20Principles%20Vol.%201.pdf

Gangwar, Sharda & Gangwar, D.K. (2009). Fundamental Principles of Accounting, Global Media (read chapter 8), from library portal.

Murthy, Guruprasad (2009). Financial Accounting, Global Media (read Module 2), from library portal.

Apple Investor Relations (n.d.) retrieved from http://investor.apple.com/

Samsung Investor Relations (n.d.) retrieved from http://www.samsung.com/us/aboutsamsung/ir/newsMain.do

Optional Resources

For review from Module 1,

Baruch College, The University of New York (2008). Guide to Financial Statements. This is a 45-minute interactive video presentation with audio. It is an excellent introduction and overview of financial statements. You do not have to watch the whole presentation at one time since it is easy to restart at different points. The information is also available in a PDF file.

Benedicto, M.S. (2008) Introduction to Financial Accounting. IE Business School. A multimedia presentation. The information is also available in a PDF file. Click on “Financial Statements Tab” and “Practical Example” tab. Retrieved from http://openmultimedia.ie.edu/openproducts/financial_accounting/financial_accounting/frames.html

You may use the chapters and associated videos listed below as an additional resource.

Walther, L.M. (2010). Principles of Accounting: A Complete Online Text, Chapters 5 through 16. Retrieved from http://www.principlesofaccounting.com/

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