Accounting Issues: Financial Review Essay


Discuss about the Accounting Issues for Financial Review.


In this report an adamantine study has been prepared on the pricing policies and issues faced by Apple in its phones and other products. After reading and analyzing the financial review, it is observed that Apple Incorporation has been keeping its price of the products high. These high pricing policies have been followed by Apple incorporation with a view to maintain its brand image on international level. In addition to this, Apple incorporation has also facing various accounting and financial issues in its reporting frameworks. It is evaluated that company has faced problems of downward slope of its sales graph which has resulted into decrease in its overall revenue turnover (Davis & Davis, 2011). The main points which have been discussed in financial review are related to pricing policies. It is evaluated that I phone need to make changes in its pricing policies. If Board of directors could estimate the market conditions and clients demand then they would come to understand the requirement of group mapping in their products. Currently, Apple incorporation has indulged in grabbing only high class clients and fewer clients towards the low level income clients. If company wants to grow speedily then it should also develop products for people who are having low level of income. On the other hand, if company is going to keep its price high then it would also fetch company in the case of determining unfair price. This would not only result into imposition of penalty on the company but also destruct the brand image of company (Brigham & Ehrhardt, 2016). In addition to this, Apple incorporation would face accounting issues as well while recording its financial transactions related to I Phone- 8. Board of directors should understand if they would allow revenues and sales record of I phone-8 in the same accounts in which sales of all products are recorded then it would become impossible to determine the profit of company merely from selling of the I phone-8. Therefore, as per the IFRS, Apple incorporation is going to face accounting issues while recording and classifying the transactions for sale of Its I phone-8 in market. On the other side, it is also considered that if company is going to keep its products price more than certain level of Cost plus profit then it would also result into unfair trade practice issues. However, it is true to say that Apple incorporation has been known for its quality of products and premium prices. Board of directors of company could easily mitigate its high price charge issues by making expenses in its research and development department. This would increase the overall cost of production and will mitigate the unfair price issues in easy and effective manner (Moon, 2017). Management department of apple could face accounting issues due to different regulatory requirement and reporting issues. Board of directors should adopt IFRS and all the reporting countries accounting and financial rules and regulations while preparing financial statement. This would not only reduce the complexity of reporting frameworks of consolidated financial statements but also result in effective reporting frameworks. After evaluating the past data and recorded view points on the subject matter, it is observed that company has faced decline in its annual sales of its products. Board of directors and CEO of company should evaluate this matter and should endeavor towards developing new less costly products (Davis & Davis, 2011). It would help Apple incorporation to grab market share in the niche areas. Currently, Apple has been facing tough competition from Samsung. Samsung has been maintaining its international brand image in all over the world. On the other hand, Apple has been facing accounting and financial issues in reporting its products sales in various countries. Now in the end, it would be inferred that Board of directors need to make changes in their accounting and financial policies with a view to mitigate stakeholders problems (Moon, 2017). It is evaluated that I phone need to make changes in its pricing policies. If Board of directors could estimate the market conditions and clients demand then they would come to understand the requirement of group mapping in their products. Therefore, by analyzing this report board of directors of Apple incorporation could easily evaluate the ethical and accounting issues in their business functioning. These issues could be mitigated by the company if company made possible changes in its accounting and reporting frameworks as per IFRS and other applicable accounting standards in reporting of its each and every business units (Bode, 2017).


Bode, K., (2017). Fictional Systems: Mass-Digitization, Network Analysis, and Nineteenth-Century Australian Newspapers. Victorian Periodicals Review, 50(1), pp.100-138.

Brigham, E.F. & Ehrhardt, M.C. (2016). Financial Management: Theory & Practice. 15th ed. Boston: Cengage Learning.

Davis, C.E. & Davis, E. (2011). Managerial Accounting. NY: John Wiley & Sons.

Moon,P,2017, The financial review, retrieved on 15th may,2017 on

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