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* It's a bit weird because they take the earnings over 2 years per device* That's not really weird, it's standard accounting. iPhone sales are linked to two y
by brk 17y ago
* It's a bit weird because they take the earnings over 2 years per device*
That's not really weird, it's standard accounting. iPhone sales are linked to two year contracts. The sale isn't "complete" legally until all contractual obligations are satisfied, thus the deferred revenue recognition.
I had a sales person give 2 extra "free" years of hardware warranty, which in short caused that revenue recognition to be deferred until all contract obligations were met.
- lionhearted 17y agoFascinating - do you know if it's possible/feasible to do this if you're doing projects and contract work? Any ideas on what kind of view is taken of offering some long term support/warranty/guarantee and taking your earnings over two years? Any articles or insight would be very much appreciated.
- mediaman 17y agoUsually you just create a warranty liability reserve account for that. It should not affect your revenue recognition.