Case study Example | Topics and Well Written Essays - 500 words - 38

Case Study Example More importantly, companies adopt distinct financial strategies depending on the status of the company (Fischer, Taylor and Cheng 34). Publicly-listed and private companies have different mode of operations, particularly on the decision-making mechanism. Since its establishment in 1976, Apple Inc. has grown tremendously. Currently, the company has a presence in more than fourteen countries. Retail stores for Apple products in these countries numbers at 394. The company is publicly listed and is valued at about 414 billion dollars, making it the second biggest corporation in the trade in terms of market capitalization. The Forbes magazine recognized Apple in 2008 as being one of the most admired cooperation in the US. In 2013, the corporation was listed among the best ten corporations of the fortune 500 list of companies. These recognitions have helped the corporation to increase the sales of its major product, the iPhone. Apple Inc can invest in securities in order to raise money for their financial obligations. Securities are held by firms and later sold for a short-term earnings. The trading securities are normally accounted at the fair market value where gains and losses are reported on the income statements. Such securities are not met by maintaining the gains or losses on the income statement. Further, the counter account on the balance sheet is the stipend for the accustomed short-term savings to the market. The accounting for ‘available-for-sale securities’ is largely similar to the accounting in the trading securities (Fischer, Taylor and Cheng 28). Nonetheless, there exists a difference regarding the recognition of the changes in the value. The changes in value for the trading securities are posted on the operating income. The ‘available for sale’ securities are posted in the special account that is regarded as ‘†unrealized gain/loss in other comprehensi ve income†.