What is the warranty period for Apple’s products? 1369 How does management establish and adjust the warranty reserve?

Subject:

Accounting

Number Of Pages:

5 Double-spaced (1125 words)

Number Of Sources:

Type of Document:

Case Study

Academic Level:

College/University

Citation Style:

APA

Attachment(s):

N/A

Solution Files(s):

N/A

Description:

Managerial accounting is more than recording, maintaining, and reporting financial results. Managerial accountants must provide managers with both financial and nonfinancial information including estimates, projections, and forecasts. An important estimate for Polaris is its reserve for warranty claims, and the company must provide shareholders information on these estimates. 1. Access and read Apple’s Warranty section of its 2013 (October 31) financial statements, accessed from Appendix A – Apple – EDGAR filing. a. What is the warranty period for Apple’s products? 1369 b. How does management establish and adjust the warranty reserve? c. What are some of the effects if the company’s actual results differ from its estimates? 2. What is the management accountant’s role in determining those estimates? 3. What are some factors that could impact the warranty accrual in a given year? 4. Using the annual report for the fiscal year ending October 31, 2014, from the SEC’s EDGAR database [www.sec.gov]: Identify any major changes from the 2013 to 2015 filings.

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