Using the links provided, answer the following questions

Questions:

1. Refer to the revenue recognition discussion in Note 1
(page 62). In general when does Apple recognize revenue? Explain Apple’s for
revenue recognition criteria. Do they appear to be aligned with the revenue
recognition criteria we discussed in class?

2. In the same footnote how did Apple recognize revenue for
the sale of an iPhone? Record their recognition of revenue for the sale of an
iPhone in the financial statements effect template. Now, obtain Apple’ amended
annual report (10-K/A) for the 2009 financial year.The filing date is:
2010-01-25. To make sure you have the correct file, I also provided the link:
http://www.sec.gov/Archives/edgar/data/320193/000119312510012091/d10ka.htm

3. Refer to the revenue recognition discussion in Note 1
(page 30).What has changed compared to the old 10-K? Why do you think the
changed occurred?

4. How does Apple now record the sale of an iPhone? Record
their recognition of revenue for the sale of an IPhone under the new revenue
recognition policy in the financial statements effect template.

5. What impact did the new accounting principle for revenue
recognition have on Apple’s balance sheet, income statement and statement of
cash flow Did the new revenue recognition principle improve or weaken the
company’s gross margin for fiscal year 2009?