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Published by:
Harvard Business Publishing (2010)
Version:
10 September 2013
Revision date:
20-Apr-2015
Length:
19 pages
Data source:
Published sources

Abstract

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?

Topics

Computers; Technology; Revenue recognition; Accounting standards
Size:
30 billion, 30,000 employees
Other setting(s):
2008-2009

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