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Accounting for the iPhone at Apple Inc.

Accounting for the iPhone at Apple Inc.

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Publication Date:
September 09, 2010

Source:
Harvard Business School

Apple initially recognized revenue associated with its iPhone product using subscription accounting. However, in 2008, the company started providing non-GAAP supplemental numbers where substantially all of the revenue was recognized upfront. Market participants’ reactions to the disclosure were mixed. Was Apple “right” in arguing that subscription accounting was inadequate for the iPhone?

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Accounting for the iPhone at Apple Inc.

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