apple current event - Ellie Kahn AIS 100 Current Event 1 In...

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Ellie Kahn AIS 100 Current Event 1. In order to calculate the percentage change, I subtracted the old net income from the new net income, divided it by the old net income and multiplied it by 100. 2. The new accounting principle is split into two deliverables. The first deliverable is accounting for the software and hardware that you originally get. The second deliverable is the right they are giving you for future software upgrades. The historical accounting principle made Apple Inc. use subscription accounting when accounting for iPhones and Apple TV. Subscription accounting involves Apple deferring the revenues and cost of sales. 3. I believe that the new accounting principle better meets the objective of financial reporting. I believe this because it allows the company to get a better idea of what the company’s expenses will be in the future. When creating new software, Apple must take into account all of the devices that have ever been made as well as all of the additional costs. Therefore, it is smart to take into account these additional
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