Apple 10K Accounting and Finance

ACCOUNTING AND FINANCE

Accounting and Finance: Apple 10K

As the mission of the US Securities and Exchange Commission (SEC) is to safeguard its investors, which it does through offering mutual funds, retirement plans, and various other types of investments (SEC. gov, 2021). They believe in treating everyone equally and fairly, for which orderly market maintenance is believed to be mandatory. It is done by being responsive to the market needs that might sometimes face challenges or be following certain trends. Technological advancement in this change regulation is considered imperative to stay updated and monitor changes continuously. Also, the facilitation of capital formation is another facilitation that it provides to its investors for which, the mission is accomplished by giving access to the investment needed. Entrepreneurs are supported with the life-changing financial opportunities or technological assistance that need to be mentioned in their reports as they are enlisted with SEC; similar action was carried out for Apple 10K.

The factors of communication, other than the reader’s background and feedback, are clarity in message presentation, determination of reader’s beliefs and language, and the organization of materials in an orderly manner. Since the stakeholders of a company belong to different cultural and linguistic backgrounds, their level of interpretation would be different as well. Highly technical terms and solid financial data might not be comprehensible by normal Apple watch customers as compared to the company board members who are more interested in risk mitigation and profit maximization, easily graspable through the company’s financial statements; they would be the ones who would have a better sense of complex terms rather than normal buyers. Moreover, the order in which the information is presented matters to the readers as well since the annual report is a one-way communication that takes place between the company and its stakeholders. It has to make sense and needs to be coherent for making the information clear and summarizing.

The other two types of information that are present in an annual report are risk factors for the company and members of the Board of Directors. The user of annual statements would be interested in risk factors so that they could analyze what challenges the company has to face while conducting its business operations, what factors affect it the most, and what measures it plans to take to alleviate their negative influence, if any, in future. It would be for maximization of profits and creating a larger market share, therefore, risks are to be reduced constantly. The information about the Board of Directors is valuable as it would help in determining the locus of control of certain policies and strategies that shape the enterprise. Besides, the implementation of those control and fair representation of the financial values is imperative to avoid any fraud or errors in business, solely depending on the type of members involved in the company’s hierarchy.