It doesn't disappear, it's noted, but just not counted as received. It is wacky, but makes some amount of sense and makes revenue more even. It helps lessen the

It doesn't disappear, it's noted, but just not counted as received. It is wacky, but makes some amount of sense and makes revenue more even. It helps lessen the incentive to stack a quarter with revenue even though it starves the next quarter (someone else's problem). It seems to relate with software updates being assumed: http://appleinsider.com/articles/09/10/21/inside_apples_iphone_subscription_accounting_changes http://appleinsider.com/articles/09/10/21/inside_apples_ipho... > Based on research into what allowed this to happened, the Sarbanes-Oxley Act was instituted to require certain minimum standards of financial accountability. Among its many rules is a provision that states that companies can't immediately book revenue for a product if the complete product has not yet been fully delivered.