Dow Jones Newswires reports that the Financial Accounting Standards Board (FASB) has given final approval to a change in accounting regulations that will allow Apple to recognize more of its iPhone and Apple TV revenue at the time of sale.
The change okayed by the Financial Accounting Standards Board helps companies that sell goods and services in bundles - like smart phones and other high-tech devices combining hardware and software, or home appliances that come with installation and service contracts.
Under current accounting rules, companies must often defer large portions of their revenue from such sales - recognizing them gradually over time, instead of immediately when the sale is made. The rule change would give companies more flexibility in crediting more of that revenue to their results upfront.
Apple has employed subscription-based accounting for its iPhone and Apple TV segments, which allows the company to provide free software updates over the two-year period considered to be the lifespan of the devices for such purposes. Apple does not use subscription-based accounting for its iPod line, a move which has required the company to charge users nominal fees for operating system updates on the iPod touch.
Apple Inc. (AAPL) is expected to be one of the major beneficiaries of the change, since it would dramatically change how the company reports revenues from its iPhone. Currently, Apple recognizes iPhone revenue over a two-year period, and said recently that overall revenues and earnings in its latest quarter would have been much higher if it didn't have to defer revenues for the iPhone and its Apple TV product. An Apple spokesman couldn't immediately be reached for comment.
While the change does not affect Apple's cash flow, it will allow the company to more accurately reflect its revenue in its quarterly financial statements. Preliminary approval of the accounting rule change had been given by a task force of the FASB early last week.
Apple is working on five new Macs for launch in 2022, including a new version of the entry-level MacBook Pro, according to Bloomberg's Mark Gurman.
In the latest edition of his "Power On" newsletter, Gurman said that he expects Apple to launch five new Macs in 2022, including: A high-end iMac with Apple silicon to sit above the 24-inch iMac in the lineup
A significant MacBook Air...
Apple is planning an entire revamp of its Apple Watch lineup for 2022, including an update to the Apple Watch SE and a new Apple Watch with a rugged design aimed at sports athletes, according to respected Bloomberg journalist Mark Gurman.
Writing in the latest installment of his Power On newsletter, Gurman said that for 2022, alongside the Apple Watch Series 8, Apple is planning an update to ...
Apple's AirTags are being used in an increasing number of targeted car thefts in Canada, according to local police.
Outlined in a news release from York Regional Police, investigators have identified a new method being used by thieves to track down and steal high-end vehicles that takes advantage of the AirTag's location tracking capabilities. While the method of stealing the cars is largely ...
Apple CEO Tim Cook "secretly" signed an agreement worth more than $275 billion with Chinese officials, promising that Apple would help to develop China's economy and technological capabilities, The Information reports.
In an extensive paywalled report based on interviews and purported internal Apple documents, The Information revealed that Tim Cook personally forged a five-year agreement...
Apple is preparing to update three of its iPad models in 2022, including the entry-level iPad, iPad Air, and iPad Pro, according to Bloomberg's Mark Gurman.
In his latest "Power On" newsletter, Gurman reiterated Apple's plans to release a new iPad Pro in 2022, featuring a new design and wireless charging, and clarified the company's intention to release new versions of the entry-level iPad...
Monday December 6, 2021 2:02 pm PST by Juli Clover
The SD card reader slot on the new 14 and 16-inch MacBook Pro models is not functioning as expected with some SD cards, according to multiple reports on the MacRumors forums.
In a long complaint thread, MacRumors readers have detailed the issues that they're having with some SD cards, and there seems to be little consistency between reports and affected SD cards. Some SD cards crash and...
Amazon today has Apple's AirPods Pro with MagSafe Charging Case for $169.99 and delivery before Christmas Day, down from an original price of $249.00. This is $10 off from the rock bottom $159.99 price tag we tracked on Black Friday and Cyber Monday, and still a great deal for anyone shopping this holiday season.
Note: MacRumors is an affiliate partner with Amazon. When you click a link and...
Monday December 6, 2021 1:05 pm PST by Juli Clover
Location tracking service Life360 has been selling the precise location data of tens of millions of its users, according to a new report shared by The Markup.
Life360 bills itself as a "family safety platform" app that is meant to allow family members to keep tabs on one another with tracking software that's installed on smartphones, and there are both Android and iPhone apps.
The...
