Apple Gets a Bruise by Blaming A $1.99 Fee on Accounting Rules - WSJ.com

[David Farber <dave () farber net>]

http://online.wsj.com/article/SB116925153861582055.html? 
mod=home_whats_news_us

"
You Needn't 'Charge Squat'?

"GAAP doesn't require you to charge squat," says Lynn Turner,  
managing director of research at Glass Lewis & Co. and a former chief  
accountant of the Securities and Exchange Commission. "You charge  
whatever you want. GAAP doesn't even remotely address whether or not  
you charge for a significant functionality change. GAAP establishes  
what the proper accounting is, based on what you did or didn't charge  
for it."

In a statement Friday night, Apple said that "the proper accounting"  
for shipping the enhancement was "to charge for this performance  
improvement in order to be in compliance with software revenue  
accounting requirements." It added that Apple had recognized revenue  
related to the computers when they were sold."

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