Economics

750 Words Nov 13th, 2013 3 Pages
Accounting Changes

Crystal Williamson

Professor Gurey

Acc499

April 24, 2012

1. Discuss the primary reason for the restatement and the impact to the financial results for the company you selected.
Apple Inc. is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. The company is best-known for its Macintosh line of computers, the iPod, the iPhone and the iPad.
As of July 2011[update], Apple has 357 retail stores in ten countries. It is the largest publicly traded company in the world my market capitalization. as well as the largest technology company in the world by revenue and profit. Although Fortune Magazine named them the most admired company
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Anything in a financial restatement has to be assessed and identified by management. They should also communicate with investors and stakeholders any restatements that could possibly take place. If this is not communicated it could result in bad accounting decisions which could, in turn, cause lots of problems for Apple or any other company where this terrible mistake is made.

3. Discuss what changes you would expect the company leadership to make related to internal controls, accounting principles, or other initiatives as a result of the need to restate the financial statements.
As far as the changes that should be made by leadership are concerned, there could be many different reasons for the restatement. It would depend on whether it is because the accountants didn’t understand the accounting guidelines or if they just simply did not follow them. Whatever the situation, company leadership would be expected to make the changes accordingly so as to conform to all rules of accounting.
Sometimes updates in regulatory guidelines or laws may cause a company to revise earlier financial statements. Depending on the industry, size of the company, and legal requirements, various regulations must be met. As mentioned before, company leadership is very responsible for checking that these regulations are met. In doing so, communication between the accountants is the most important to

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