write an article on Accounting Investment Methods. It needs to be at least 500 words.
Hello, I am looking for someone to write an article on Accounting Investment Methods. It needs to be at least 500 words.
Companies adopt distinct financial strategies depending on the status of the company (Fischer, Taylor, and Cheng 34). Publicly-listed and private companies have different modes 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. 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 lists 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 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 comprehensive income”. This is recorded in the stockholders’ equity.
This ensures that the income statement remains unaffected by any changes in the accounting procedure. Further, the counter account to unrealized gain or loss in other broader income is short-term ‘available-for-sales’ in the fair market alterations. There exist the ‘hold to maturity securities that are bought by a firm and only sold after the maturity period has lapsed. Such securities are posted on the cost account. They are regarded as loss and/or gain after the firm has sold the securities.
Apple Inc can decide to utilize the best investment approach, which will ensure the firm continues with its profitability record while meeting its business objectives. In any successful organization, there needs to be an elaborate system to help in the administration of the operations (Fischer, Taylor, and Cheng 62). The systems need to be strategically controlled and coordinated to facilitate the execution of the best approaches by aligning resources with the strategic goals. The check-and-balances in a successful organization are designed in a way to transform systems firmly along with established inhibitive cultures.
Moreover, these investment tools should be made available and transparent for all stakeholders including clients, employees, and regulators.