You are on page 1of 23

1.

Name of the Company: Apple Inc
 Website: www.apple.com
 Headquarter: Infinite Loop Cupertino, California
 Nature of Business: Apple Inc. is an American multinational corporation
that designs and manufactures consumer electronics, computer software, and
personal computers. The company's best-known hardware products include
Macintosh computers, the iPod, the iPhone and the iPad.
Products:









i Phone
i Pad
Mac
i Pod
i Tunes & i Tunes Store
Mac App Store
i Cloud
Apple Pay
Accessories: Apple TV, Apple Watch
Operating Systems: Ios & OS X

Company Background
Apple Computer, Inc. designs, manufactures, and markets personal computers,
software,networking solutions, and peripherals, including a line of portable digital
music players. Apple's product family includes the Macintosh line of desktop and
notebook computers, the iPod digital music player, the Mac OS X operating system,
the iTunes Music Store, the Xserve G5 server, and Xserve RAID storage products.
The company's products are sold online, through third-party wholesalers, and
through its own chain of stores. Apple owns approximately 125 retail stores in the
United States, as well as stores in Canada, Japan, and the United Kingdom.
Apple was founded in April 1976 by Steve Wozniak, then 26 years old, and Steve
Jobs, 21, both college dropouts.
Business Strategy
The Company is committed to bringing the best user experience to its customers
through its innovative hardware, software and services. The Company’s business
strategy leverages its unique ability to design and develop its own operating
systems, hardware, application software and services to provide its customers
products and solutions with innovative design, superior ease-of-use and seamless
integration.

2. Name of the Company: Samsung




Website: www.samsung.com
Headquarters: SEOUL,SOUTH KOREA
Nature of Business:
Samsung Electronics is the world’s largest consumer electronics company.
Producing everything from phones, TVs, cameras and laptops to microwaves
and freezers, it is a top three brand in pretty much every category in which it
is active. 2010 sales were in excess of $135 billion with net profits of over
$14 billion. Samsung Electronics is now twice the size of Sony, the company
which 20 years ago was the undisputed leader in the sector.

Products: There is a range of products & services offered by Samsung namely:

















Cell Phones
TV’s
Tablets
Wearable Tech
Blu-Ray & Smart Players
Home Audio
Digital Cameras & Camcorders
Computers
Memory & Storage
Home Appliances
LED Lighting
Accessories
LED Lighting
Advertising
Construction
Entertainment
Financial Services
Hospitality
Medical & healthcare Services

Historical Background:From its inception as a small export business in Taegu, Korea, Samsung has grown
to become one of the world's leading electronics companies, specializing in digital
appliances and media, semiconductors, memory, and system integration. Today
Samsung's innovative and top quality products and processes are world recognized.
This timeline captures the major milestones in Samsung's history, showing how the
company expanded its product lines and reach, grew its revenue and market share,
and has followed its mission of making life better for consumers around the world.

1938-1969 Samsung's Beginnings

and fruit to Manchuria and Beijing.On March 1. In little more than a decade. its own manufacturing and sales operations. 1938. founding chairman Byung-Chull Lee started a business in Taegu. his business focused primarily on trade export.European Countries. Korea. with 30.000 won. and ultimately evolve to become the modern global corporation that still bears the same name today.Australia and Asian Countries. founded 195 1 Samsung Moolsan established (now Samsung Corporation) 193 8 Samsung founded in Taegu. Samsung-which means "three stars" in Korean-would have its own flour mills and confectionery machines.North & South Europe. India. selling dried Korean fish. Hong Kong & Taiwan Japan Rest of Asia Pacific. At the start. 197 0 Black-and-white TV (model: P-3202) production started by Samsung-Sanyo Samsung-Sanyo Electronics established (renamed Samsung Electro196 9 Mechanics in March 1975 and merged with Samsung Electronics in March 1977) 196 6 Joong-Ang Development established (known today as Samsung Everland) DongBang Life Insurance acquired (renamed Samsung Life Insurance in July 196 3 1989) Ankuk Fire & Marine Insurance acquired (renamed Samsung Fire & Marine 195 8 Insurance in October 1993) 195 4 Cheil Industries Inc. Samsung:     America Europe Middle East & Africa China . Middle East & Africa Greater China – China. vegetables. Korea Point 2: Geographical Areas Apple:      Americas.

We work to improve education in disadvantaged areas by offering education infrastructure and e-learning to students. Asia Point 3: Contents of Information in Annual report:Apple:       Business Risk Factores Selected Financial Data Mnagement Discussions and Analysis of Financial Conditions Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Samsung  Business OverviewThe Business is broadly segmented into three Categories Consumer Electronics  IT & Mobile Communications  Device Solutions  Global Citizenship Samsung Electronics believes that our continuous and effective social responsibility programs build a better world. We expand job opportunities for young adults with IT vocational training. With the combined efforts of our sincere hearts and spirits.  Social Contributions-Sharing & volunteering to support New Hope. we expect to create a healthier and friendlier world. Around the globe. job training and healthcare issues that reflect the needs. We look for ways to instill joy by helping to resolve community challenges. protect the environment and share growth with our employees and partners. Below are the Key areas in which Samsung is active & same has been stressed upon in The Annual Report. We improve the health and quality of . Samsung Electronics hosts five social responsibility programs to address education. business affiliations and characteristics of the local community.

based on 2008 standards. such as the Life Coaching Center.lives in disadvantaged regions with high-tech medical equipment.  Financial Statements: The reports & statements as disclosed in the Annual Reports are as follows: Independent Auditors Report  Consolidated Statements of Financial Position  Consolidated Statements of Income  Consolidated Statements of comprehensive Income  Consolidated Statements of changes in Equity  Consolidated Statements of Cash Flows  Notes to Consolidated Financial Statements Forward Looking Statements- .and third-tier suppliers.  Health & Safety-Creating safe & healthy workplace. we took that initiative to the next level with the Shared Growth Ecosystem Program. Samsung Electronics makes every effort to operate safe workplaces and to protect employee health by creating comfortable and thoroughly safe conditions. To that end. Across our workplaces worldwide. Besides the worldclass safety and health management systems in every workplace. we promote transparent procurement.  Sharing Growth-Success Built on helping & dreaming together . we operate a range of programs designed to bolster supplier skills. we have established a variety of health-first programs for employees. preventive measures for muscular skeletal disease and several counseling facilities. win-win partnerships and a culture of shared growth. we plan to extend the benefits of our shared values to second. In 2013.  Green Management-Green management that protects the planet. we comply with OHSAS 18001. which included achieving accumulated 250 million tons of greenhouse gas reduction during the product use phase and reducing greenhouse gas emissions by 70% on KRW-based energy conversion. As valued partners. to help manage mental health. Samsung Electronics’ Green Management is founded on our Planet First initiative. green workplaces and green communications. We also developed three strategic missions to achieve a range of activities in green products. Our programs are specifically developed and implemented to address local issues. we established the Seven Shared Growth Implementation Plan. including professional medical services at an in-house hospital. a global standard for occupational health and safety management systems. our suppliers sharpen the competitive position of Samsung Electronics.and long-term goals of Eco-Management 2020. Working within the ecosystem. diet clinics. With the goal of growing together in global markets. In 2010. we established the new mid. which puts protection of the earth first. In 2014.

This forward looking information is important for investor’s decision making as this information may raise an expectation of reliability in investors. not merely a perceived response to increasing red tape. will have a real opportunity to leverage their reporting to increase investor understanding. Companies who approach reporting with the right mindset – one of transparency. on a test basis. achievements or financial position. uncertainties and other factors that may affect our actual results. including . achievements or financial position expressed or implied by these forward-looking statements.” “forecasts. making them materially different from the actual future results. Those standards require that auditor plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. performance. An audit includes examining. evidence supporting the amounts and disclosures in the financial statements. Point No 4: Audit Report & its Scope Apple: Name of the Auditor: Ernst & Young Scope of Audit/Nature of Assurance: Audit has been conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States).” “estimates” or other words or phrases of similar meaning.” “anticipates. performance.Both the annual report include forward-looking statements that relate to future events and can be generally identified by phrases containing words such as “believes. as well as evaluating the overall financial statement presentation. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.” “foresees. The purpose of auditing standards generally accepted in the Republic of Korea (“KSAs”) is to establish basic principles and essential procedures1 for auditors to comply with in their performance of audits of financial statements.” “expects. An audit also includes assessing the accounting principles used and significant estimates made by management. These forward-looking statements are not guarantees of future performance and may involve known and unknown risks. Samsung: Name of the Auditor: Price Water Coopers (PWC) Scope of Audit/Nature of Assurance: Audit has been conducted in accordance with the Korean Standards on Auditing.

Reasonable assurance is a concept relating to the accumulation of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial statements taken as a whole. herein after). respectively 17.844 14. except number of shares which are reflected in thousands and par value) 2014 $ 2013 $ ASSETS: Current assets: Cash and cash equivalents 13. Nature of AssuranceAn audit in accordance with KSAs is designed to provide reasonable assurance that the financial statements taken as a whole are free from material misstatement. where appropriate.233 26. Point No 5: Comparative Set Of Financial Statements Apple: Balance Sheet: CONSOLIDATED BALANCE SHEETS (In millions.consolidated financial statements and conglomerate combined financial statements. as required under Article 5 of the Act on External Audit of Stock Companies (referred to as “External Audit Act”. The term “scope of an audit” refers to the audit procedures deemed necessary in the circumstances to achieve the objective of the audit. Reasonable assurance relates to the whole audit process.287 Accounts receivable.102 .259 Short-term marketable securities 11. The procedures required to conduct an audit in accordance with KSAs should be determined by the auditor having regard to the requirements of KSAs and. the terms of the audit engagement and reporting requirements.460 13. less allowances of $86 and $99.

624 4.111 4.208 Total liabilities 120.826 43.256 1.882 Total current assets Long-term marketable securities Property.494 shares issued and outstanding.082 (471 Total shareholders’ equity 111.318 9.162 20.451 23.600.856 7. 5.215 16. 00 207000.539 6.531 130.031 28.179 5.960 20.764 3.448 3.000 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital. plant and equipment.625 16.152 104.161 and 6.491 6.196 18.294.806 1.547 123.000 shares authorized.00001 par value. 00 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper 30.Inventories Deferred tax assets Vendor non-trade receivables Other current assets 2.453 8.759 9.292 83. respectively Retained earnings Accumulated other comprehensive income/(loss) . net Other assets 68.453 7.616 4.577 4.597 1.146 Total assets 231839.367 13. $0.308 22.764 73.142 3.866.286 106.435 0 Total current liabilities Deferred revenue – non-current Long-term debt Other non-current liabilities 63. 12.764 87. net Goodwill Acquired intangible assets.549 Total liabilities and shareholders’ equity 231.658 2.313 19.987 24.839 207.

662 6.381 Selling. except number of shares which are reflected in thousands and per share amounts) 2014 $ 182.510 37.304 68.508 70.037 41.477.733 6. net Income before provision for income taxes Provision for income taxes Net income Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic 2012 $ 87.726 Net sales Cost of sales Gross margin Operating expenses: Research and development Operating income Other income/ (expense). general and administrative 11.503 48.483 50.155 55.830 10.241 980 1.P&L Statement: CONSOLIDATED STATEMENTS OF OPERATIONS (In millions.993 10.68 6.421 52.25 8 2013 $ 170.034 15.999 55.973 13.543.305 13.31 6.041 4.118 14.3 6.91 0 106.763 13.38 6.5 6.60 6 156.72 5.846 .030 39.040 Total operating expenses 18.79 5 112.156 522 53.475 3.49 6.45 5.085.537 64.

122.6 34 1.602.469.737.884.6 9 Short-term financial instruments 39.7 1 Available-for-sale financial assets 3.6 63 20 6.521. and its subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31-Dec14 USD Million Assets Current assets Cash and cash equivalents 15.38 SAMSUNG:  BALANCE SHEET Samsung Electronics Co.122.82 1.26 Trade receivables 23.Diluted Cash dividends declared per common share 72 6.483 0..64 6.997.5 6 .458.617.5 4 34.01 23.3 6 31-Dec13 USD Million 15.414.3 0 1. Ltd.

17 10.299.9 4 2.1 4 2.80 1.627.9 1 3.90 49.28 613.716.55 0.48 12.434.41 2.216.6 0 3.3 1 4.176.93 26.691.545.781.116.450.232.88 7.39 6.613.17 1.179.15 18. 01 8.05 .58 2.08 7.970.705.85 1.35 8.014.19 8.73 105.776.66 1.86 203.052.43 935.28 4.87 3.48 7.57 309.889.62 2.68 2.288.926.934.292.18 109.Non-trade receivables Advances Prepaid expenses Inventories Other current assets Assets held for sale Total current assets Non-current assets Available-for-sale financial assets Associates and joint ventures Property.410.97 4.52 76.00 6.103.06 16.93 218.390.689.831.34 9.3 5 4.362.00 96.42 12.89 1.349.355.51 2.304.99 2.824.21 5.59 5.580.518.5 6 1.033.00 48. 47 1.245.001.736.399.85 1.217.00 1.62 5.38 1.746.32 3.78 1.620.66 2.24 444.801.78 71.742.90 4.117.028.92 1.76 6.100. plant and equipment Intangible assets Long-term prepaid expenses Deferred income tax assets Other non-current assets Total assets Liabilities and Equity Current liabilities Trade and other payables Short-term borrowings Other payables Advances received Withholdings Accrued expenses Income tax payable Current portion of long-term borrowings and debentures Provisions Other current liabilities Liabilities held for sale Total current liabilities Non-current liabilities Debentures Long-term borrowings Long-term other payables 3.

43 141.  Reserves & Surplus have increased from 19882 million $ a whooping increase of 14% .762.36% hike .. 19 1.1 3 76.042.78 159.85 1.59 137.12 60.  The liquid assets have increased by 5892 million $ which is an impressive increase of 6.43 161.Net defined benefit liabilities Deferred income tax liabilities Provisions Other non-current liabilities Total liabilities Equity attributable to owners of the parent Preferred stock Common stock Share premium Retained earnings Other components of equity Accumulated other comprehensive income attributable to assets held for sale Non-controlling interests Total equity Total liabilities and equity 191.012.49 739.892.26 3.49 739. 10 113.183.38 437.673.183.96% whereas current liabilities have increased by 664 million $ which is a 1. Ltd.610.05 0.092.427.10 4. 40 218.04 5. and its subsidiaries .35 8.  P&L Account Samsung Electronics Co.30 1.161. 95 203.985. so the current financial position has increased since the asset base has increased & is sufficient to pay off the current liabilities.10 4.77% thereby increasing the liquidity position of the concern.54 154.09 113.852.21 5.06 5.00 ANALYSIS: The Balance Sheet reveals that the there has been increase in the Current Assets of 4166 Million $ which is approx 3.67 474.38 142.505. 09 8.214. It shows that the profitability of the company has increased.88 7. 66 12.294.711.37 59.

Comparison Of The Financial & Income Statement Of The Two Companies .533 7.943 2.4 3 2013 USD 217.254 23.367 36.94 187.949 28.  The non operating expenses have increased by 614 million $ leading to a fall in PBIT of 9964 million $ & fall in PAT by 6726 million $.480 4.497 34.611 2.85 7 74.444 7.308 1.256 22. in US dollars) Basic Diluted 2014 USD 195.441 51.83%).02 6 50.495 28.613 7.2014 Revenue Cost of sales Gross profit Selling and administrative expenses Operating profit Other non-operating income Other non-operating expense Share of profit of associates and joint ventures Financial income Financial expense Profit before income tax Income tax expense Profit for the year Profit attributable to owners of the parent Profit attributable to non-controlling interests Earnings per share for profit attributable to owners of the parent (in Korean Won.772 3.24 4 130.80 3 86.4 4 145.846 6.533 1.223 21.88 3 121.927 296 145.9 ANALYSIS The revenue for this year has come down by 21361 million $ (9.For the year ended December 31.929 26.147 325 7.328 621 187.

21 Quck Ratio 0.88 Debt/Equity Ratio 1.89 1. Higher ration shows that a company has been aggressive in financing its growth with debt. A .00% Ratio Analysis Samsung Remarks Financial Ratios Apple Current Ratio 1.00% 0.Comparision of Balance Sheets 50% 40% 30% 20% 10% 0% -10% Comparision of P&L Accounts 10.00% Growth in Revenue Growth in Operating Profit Growth in Net Profit -20.08 7 Measure of companies ability to pay short term obligations Measures the amount of cash.00% -40.00% -30. and accounts rec that can be used to pay liabilities.08 2.00% -10. short term equivalents.

which will arrive in the spring. . but it's a steep uphill battle. which launched the iPhone 6 Plus to nullify its primary advantage of larger screen sizes.Lenovo. which toppled Samsung as China's top smartphone maker in August. Xiaomi. smart glasses. Morgan Stanley). During that time. which fueled a 16% YOY jump in iPhone unit sales last quarter.69 0.9% to 12%.1% to 5.3 ROI 0. 77) 129 (-37) Profitability Ratio 0. but there's no guarantee that scattergun strategy will work. Apple's market share only slipped from 12. saw its market share more than double from 2.17 0.8% in the third quarter of 2014.15 higher ratio makes it more difficult to borrow money. In 2014. Samsung's global market share fell from 32. and smart home compatible products can help it diversify away from smartphones.5% in the third quarter of 2013 to 23. Samsung also hopes that new products like smartwatches. Apple has major catalysts on the horizon. Robust demand for the iPhone 6.45(+0. Piper Jaffray) to 60 million (Katy Huberty. and Huawei. while Samsung simply faces a lot of obstacles. according to IDC. Samsung lost market share in critical markets like China to competitors like Xiaomi. Measures profitability with respect to sales Measures overall effectiveness in generating profits. Measures earning power on shareholder’s book value investment. a VR headset. In the second half of the year. As a result. should remain strong throughout 2015. Samsung lost ground in the high-end market to Apple. OPINION Apple will keep climbing in 2015 as Samsung stalls out or declines. Samsung hopes that unique premium phones like the Galaxy Note Edge and cheaper emerging market phones like the Galaxy S Duos 3 can help it get back on track.EPS 6.10 ROE 1. An increase in earning per share is generally considered a favorable trend. range from 10 million (Gene Munster. Point 7: INVESTING DECISION:There are plenty of reasons to be bullish on Apple in the coming year. Forecasts for the Apple Watch. which flooded the market with cheaper handsets with comparable specs.21 0.3%.

and (iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition. No. Hence investment should be done in apple. The accompanying consolidated financial statements have been condensed. Meanwhile. (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP. which will gradually replace the existing financial accounting standards established by the Korean Financial and Supervisory Board. 2007. The Korean Accounting Standards Board has published a series of Statements of Korean Financial Accounting Standards (“SKFAS”). Significant Accounting Policies:1. in reasonable detail. its flat-growth semiconductor business. generally accepted accounting principles (“GAAP”).S. Apple's in-demand iPhones and Macs are poised for growth. .Samsung's smartphone woes. 24 became applicable to the Company on January 1. accurately and fairly reflect the transactions and dispositions of the Company’s assets.The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with the International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). especially as the company continues to integrate wearables and smart-tech solutions for users. or disposition of the Company’s assets that could have a material effect on the financial statements. Point 8: Footnotes in Samsung 1. the Company adopted these statements in its financial statements as of and for the year ended December 31. 11. 2007. restructured and translated into English from the Korean language financial statements. The Company’s internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that. 21 and No. As SKFAS No. and that the Company’s receipts and expenditures are being made only in accordance with authorizations of the Company’s management and directors. and its lowmargin consumer products division are bright red flags for investors considering picking up shares of the South Korean tech giant. Samsung. use. Major Accounting Policies followed:AppleThe Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.

 DIFERENCE BETWEEN KOREAN STANDARDS & US GAAP CONSOLIDATION . the Company disclosed its earnings pershare on the face of its statements of income and net incomes of the controlling interests and minority interests were presented separately on its statements of income. Revenue from installation service contracts is recognized using the percentage-of-completion method. Principles of Consolidation The Company records differences between the investment account and corresponding capital account of subsidiaries as goodwill or negative goodwill. Preparation and Presentation of Financial Statements and SKFAS No. except those securities that mature or are certain to be disposed of within one year. available-for-sale securities and held-to maturity securities. minority interests in consolidated subsidiaries are presented within equity and identified separately from the equity of the controlling interests in the consolidated balance sheet. the Company separated its capital adjustments account into capital adjustment and accumulated other comprehensive income. actual results may differ from those estimates. 5. Revenue Recognition Sales of products and merchandise are recognized upon delivery when the significant risks and rewards of ownership of the goods are transferred to the buyer. Marketable Securities Investments in equity securities or debt securities are classified into trading securities. Consolidated Financial Statements. In accordance with SKFAS No.2. In addition. which are classified as current assets. However. 6. and disclosed the details of its comprehensive income in the notes to the consolidated financial statements. 21. and such differences are amortized over five years using the straight-line method. Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions that affect amounts reported therein. 25. Trading securities are classified as current assets while available-for-sale securities and held-tomaturity securities are classified as long-term investments. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future. differences which occur from additional investments acquired in consolidated subsidiaries are reported in a separate component of shareholders’ equity. depending on the acquisition and holding purpose. In accordance with accounting principles generally accepted in the Republic of Korea. 4. 3. and are not included in the determination of the results of operations.

a component of equity.S. and no condition both constrains the transferee (or holder) from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor. each holder of its beneficial interests) has the right to pledge or exchange the assets (or beneficial interests) it received. Certain large business groups are required by the Government to prepare combined financial statements. GAAP. (2) Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are reported at fair value with unrealized gains and losses included in earnings. In limited cases. are recorded as sales. non-consolidated financial information for the parent company only and combined financial statements may be presented as supplementary information. SECURITIES VALUATION  Under Korean GAAP.  Under U. Under Korean GAAP. • each transferee (or. debt and equity securities bought and held for the purpose of selling them in the near term are classified as marketable securities and other securities are classified as investment securities. GAAP. the primary financial statements are prepared on a consolidated basis. 115 “Accounting for Certain Investments in Debt and Equity Securities” requires investments in all debt securities and equity securities with readily determinable fair value to be classified into three categories and accounted for as follows: (1) Debt securities that a company has the positive intent and ability to hold to maturity are reported at amortized cost. financial statements are prepared on a non-consolidated basis and also on a consolidated basis for entities with subsidiaries or controlled companies.  Investments in equity securities with readily determinable fair values and investments in available-for-sale debt securities are reported at fair value with unrealized gains or losses reported as a capital adjustment in shareholders’ equity until realized. such transactions result in recording transferred assets as sold only if the transferor has surrendered control over the transferred assets and all the following are met: • transferred assets have been isolated from the transferor presumptively beyond the reach of the transferor and its creditors. if the transferee is a qualifying special-purpose entity. and (3) Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as “available-for-sale securities” and reported at fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income. and .  Marketable securities are reported at fair value. and recognition should be given to the potential cost of the recourse obligation.  Under U. Accounting for Transfers of Assets  Under Korean GAAP. even in bankruptcy or other receivership. GAAP. Statement of Financial Accounting Standards (“SFAS”) No.S.S. and valuation gains or losses are reported in current operations. transfers of assets. which are conducted in accordance with the Korean Asset Securitization Act. Gains or losses on sales are determined as the difference between the carrying amount of the assets sold and the net proceeds received.  Under U.

Apple: The following table shows information by operating segment for 2014. GAAP. a company records a liability provision for expenses matched with the related income in the current period if the expense is certain and if the amount of the expense is reasonable. a) Yes the Financial Statements are prepared in accordance with the International Statements. Contingent Liabilities and Contingent Assets  Under Korean GAAP.23 2 24.• the transferor does not maintain effective control over the transferred assets through either (1) an agreement that both entitles and obligates the transferor to repurchase or redeem them before their maturity or (2) the ability to unilaterally cause the holder to return specific assets. If a decrease in net assets is certain and the loss can be reasonably estimated.S.  Under U. and  the amount can be estimated reliably Revenue Recognition  Under previous Korean GAAP.  payment is probable.  Segmentaion Information: a) Yes the Companies also provide the Segment Information of the industry in which they operate.51 2 23.  Under US GAAP . Provisions. revenue should be recognized when the earnings process is completed or virtually completed and the revenue is realized or realizable.31 6 2013 2012 62. product revenues are recognized when goods are sold and delivered and service revenues are recognized on the percentage completion method. However. a contingent loss is recognized in current operations.81 7 57.41 4 . and only if:  a present obligation (legal or constructive) has arisen as a result of a past event (the obligating event). a contingency gain is not recognized in current operations until the contingent conditions are resolved. a company recognizes a provision if. or more likely than not. 2013 and 2012 (in millions): Americas: Net sales Operating income 2014 (in $) 65. other than through a cleanup call.73 9 22.

46 2 4.253 21.819 10.88 3 13.653 .025 18.82 8 4.Europe: Net sales Operating income Greater China: Net sales Operating income Japan: Net sales Operating income Rest of Pacific: Net sales 40. 2014 and September 28.53 3 9.98 2 7.34 4 3.01 6 25.541 22.18 1 3.41 7 8.46 2 6.352 5.32 3 14.636 11.22 8 4.183 13.84 6 11.613 Asia Operating income Retail: Net sales Operating income The following table shows total assets by segment and reconciliation to the Consolidated Balance Sheets as of September 27.843 14.575 20.92 9 14.57 1 5.861 10.753 10.74 1 4. 2013 (in millions): Segment assets: Americas 2014 (in $) 2013 9.86 9 29.77 1 37.02 5 36.

329 Total segment assets Corporate assets 24. a corresponding provision is recognized in the financial .412 57.0 86 Total assets 231. and is not required for privately held ones.073 34.213 Non-current assets1 53.426 712 3.0 00 Samsung: In Million $ Korea Ameri ca Europ e Asia & Africa China Intercom pany eliminatio n within the group Net segment revenue 17.769 8.712 36. and the amount is reasonably estimable. and investments in associates and joint ventures.631 3.79 5 207.626 3.8 39 207.Europe Greater China Japan Rest of Asia Pacific Retail 4.273 27.219 6.371 -544 71. Segment reporting is intended to give information to investors and creditors regarding the financial results and position of the most important operating units of a company. Segment reporting is the reporting of the operating segments of a company in the disclosures accompanying its financial statements. b) Contingent Liabilities  Yes the companies provide information about the contingent liabilities in their Footnotes.0 44 18.91 4 188.742 0 173. When it is probable that an outflow of economic benefits will occur due to a present obligation resulting from a past event.106 908 3. Segment reporting is required for publicly-held entities.172 3. which they can use as the basis for decisions related to the company.943 2.Total of non-current assets other than financial instruments.953 Consolid ated Note.932 923 3. deferred tax assets.134 2.

 When you record a liability in the accounting records. Key management consists of registered executive officers who have the authority and responsibility in the planning. However. d) Information about Share Prices & dividends APPLE:  No of Outstanding Shares: 6294494  Market Value: $462522 Million  P/E Ratio: 15.They recognize expenses for shortterm benefits . you should review the disclosures accompanying a company's financial statements to see if there are additional risks that have not yet been recognized.there is no need to record a liability unless the risk of loss is quite high.09  Price Per Share/Book Value Per Share-1.  Contingent Liability should be recorded in the Footnote since there is no fixed liability at the time of preparation of the financial statements. These disclosures should be considered advance warning of amounts that may later appear as formal liabilities in the financial statements.430 . when such outflow is dependent upon a future event that is not certain to occur. or cannot be reliably estimated. Thus.62 SAMSUNG:  No of outstanding Shares-Listed Shares 159. a disclosure regarding the contingent liability is made in the notes to the financial statements.34 . long-term benefits and severance benefits .  The Auditors fee are disclosed in the Annual Report .statements.215  Market Value PE Ratio-1.047. Unlisted Shares 78. The accounting rules for the treatment of a contingent liability are quite liberal . c) Information about the Company’s compensation packages  The Companies provide the details of the Company’s executive & management Compensation packages .162. this does not mean that you are also setting aside funds to pay for the liability when it must eventually be paid – recording a contingent liability has no impact on cash flow. directing and controlling of Company operations.

In essence. This is why the P/E is sometimes referred to as the multiple because it shows how much investors are willing to pay per dollar of earnings. . the price-earnings ratio indicates the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company’s earnings.Interpretation.