Accounting for the iPhone at Apple Inc.

INSTRUCTIONS:
You receive a call from an Apple investor who asks you the following questions:
1) Why does Steve Jobs believe that the non-GAAP revenue numbers reported by
Apple are a better measure of its iPhone sales than the revenues reported under
U.S. Generally Accepted Accounting Principles (GAAP)? Ensure you explain the
differences in the measurement of Apple’s revenue under GAAP vs non-GAAP as
proposed by the company.

2) Does it matter in assessing the performance of Apple if how revenue is
recognized under GAAP for the sale of smartphones changes to reflect what the
company proposes? Why or why not?

3) Beyond earnings what would be appropriate accounting metrics or measures to
analyze and assess the performance of Apple in comparison to similar companies?
In making this assessment, you are only expected to use the concepts we have
discussed in the course.
You are to prepare a report to address these three questions. Please see the instructions
below regarding this report.
Materials to use (only the ones provided in the files, please do NOT use outside resources to answer the following questions).
The assignment case is: Accounting for the iPhone at Apple Inc. The rest are other materials to be used when referring to it.
For question 3, I want to examine ratio analysis (ROE, protift martin, debt to equity ratio), amongst others you think are appropriate to measure.
please follow all instructions.
You may access only materials from this course for the purpose of this report.
Your report should be no longer than 1,000 words excluding exhibits. The word count limit includes
the entire content of your document (including headings and titles) but excludes exhibits.
The penalty for exceeding the word count limit is 1% for every 50 words (or portion thereof)
over the word limit.