Will Apple Ring in the Old and New iPhones Next Quarter?
Apple (AAPL) just might open their new cash register next quarter. The FASB has ruled that Apple can begin accounting for iPhone sales as they happen. The new regulations mandate the change to occur at or before Q1 2011. The Task Force reached a consensus that this Issue shall be applied on a prospective basis for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, with earlier application permitted. If a vendor elects earlier application and the first reporting period of adoption is not the first reporting period in the vendor’s fiscal year, the guidance in this Issue must be applied through retrospective application from the beginning of the vendor’s fiscal year and the vendor must disclose the effect of the change to those previously reported periods. Since Apple lobbied for the accounting change, I think they will move on this. When Apple reports its earnings next month, it will be able to present its iPhone sales in any of
