Case Study Analysis and Solutions

Case ID: 111003

Abstract:
Case Solution & Analysis for Accounting for the iPhone at Apple Inc. by Francois Brochet, Krishna G. Palepu, Lauren Barley
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?

Keywords:
Accounting standards, Computers, Revenue recognition, Technology, Accounting for the iPhone at Apple Inc. Case Solution

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