1. Go to marketwatch.com, a Dow Jones & Co. site. Look for the magnifying glass

Question

1. Go to marketwatch.com, a Dow Jones & Co. site. Look for the magnifying glass symbol (at top right of blue banner at top of page), click it, then type the stock symbol "AAPL" into the search bar that appears. Next, click on the tab for "Analyst Estimates." a. What is the mean earnings per share estimate for this quarter? (Indicate what date your information is "as of"-i.e., the date on which you performed this search.) What is the mean EPS estimate for the next fiscal year? (Indicate what date your information is "as of.") Explain why performing accounting research before a transaction occurs might be important to Apple's management. b. c.

Explanation / Answer

A. Mean earnings per share = 1.87. The information is as of 3rd November 2017 and the mean estimate of EPS is for this quarter.

B. Mean EPS estimate for next fiscal year is 11.10. The information is as of 3rd November 2017.

C. Performing accounting research before a transaction occurs might be important as it will enable Apple’s management to evaluate whether the expected financial statement impacts of the transaction, as drafted, are acceptable. Secondly it will enable management to adjust forecasted earnings to reflect the expected impacts of the transaction. Thirdly management is able to prepare timely documentation of the expected accounting position.

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