Research Article

THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: “APPLE RULES”

Volume: 19 Number: 1 March 30, 2017
  • Banu Sultanoğlu *
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The World of Accounting Science
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THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: “APPLE RULES”

Abstract

In the last ten years, software companies enter into more complex service offerings, so-called ―“multiple deliverables”. This study describes how Apple Inc. found itself in the center of subscription accounting rules in US GAAP causing an understatement of its iPhone earnings by $3.8 billion in 2008 and then primarily took the leading role in pushing Financial Accounting Standards Board (FASB) for a need of standard change in that particular industry, started in 2008 and finalized in 2014. On September 23, 2009, the industry gained its first victory against Generally Accepted Accounting Principles (US GAAP) with the issuance of new rules; Emerging Issues Task Force (EITF) Issue No. 08-1, “Revenue Arrangements with Multiple Deliverables” (EITF 08-1) and then penetrated the whole industry in the world with a converged standard; namely “Revenue from Contracts with Customers” (IFRS 15) which was issued jointly by FASB and International Accounting Standards Board (IASB) on May 28, 2014 superseding all FASB’s and IASB’s rules.

Keywords

References

  1. Blodget, H. 2009. “iPhone Accounting Change Could Send Apple Profits And Stock To Moon”, www.businessinsider.com/henry-blodget-new-apple-iphone-accounting-change-could-send-profits-and-stock-to-moon-2009-9 (Access Date: 20.02.2016).
  2. Bowen, R. and Kennedy, J. 2010. “The iPhone Revenue Bomb”, http://faculty.washington.edu/rbowen/cases/Apple%20Revenue%20Rec%20Strategy%20(B)_10-10.pdf (Access Date: 18.03.2016).
  3. Brochet, F., Palepu, K. and Barley, L. 2013. “Accounting for the iPhone at Apple Inc.”, www.hbs.com (Access Date: 18.02.2016).
  4. DeWitt, P. 2009. “Spotlight on Apple’s Hidden Revenue Stream”, http://fortune.com/2009/01/20/spotlight-on-apples-hidden-revenue-stream/ (Access Date: 18.03.2016).
  5. Dilger, D. 2009. “Inside Apple’s iPhone Subscription Accounting Changes”, http://appleinsider.com/articles/09/10/21/inside_apples_iphone_subscription_accounting_changes (Access Date: 18.03.2016).
  6. FASB, 2008. “EITF 08-01: Revenue Arrangements with Multiple Deliverables”.
  7. FASB, 2008. “EITF 00-21: Revenue Arrangements with Multiple Deliverables”.
  8. IASB, 2014. “IFRS 15: Revenue from Contracts with Customers” http://www.iasplus.com (Access Date: 24.03.2016).

Details

Primary Language

English

Subjects

Business Administration

Journal Section

Research Article

Authors

Banu Sultanoğlu * This is me
Türkiye

Publication Date

March 30, 2017

Submission Date

January 20, 2017

Acceptance Date

March 10, 2017

Published in Issue

Year 2017 Volume: 19 Number: 1

IZ

https://izlik.org/JA33GY52FT

Cite

RIS / Bibtex
APA
Sultanoğlu, B. (2017). THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: “APPLE RULES”. Muhasebe Bilim Dünyası Dergisi, 19(1), 34-57. https://izlik.org/JA33GY52FT
AMA
1.Sultanoğlu B. THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: “APPLE RULES.” MODAV-MBDD. 2017;19(1):34-57. https://izlik.org/JA33GY52FT
Chicago
Sultanoğlu, Banu. 2017. “THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: ‘APPLE RULES’”. Muhasebe Bilim Dünyası Dergisi 19 (1): 34-57. https://izlik.org/JA33GY52FT.
EndNote
Sultanoğlu B (March 1, 2017) THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: “APPLE RULES”. Muhasebe Bilim Dünyası Dergisi 19 1 34–57.
IEEE
[1]B. Sultanoğlu, “THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: ‘APPLE RULES’”, MODAV-MBDD, vol. 19, no. 1, pp. 34–57, Mar. 2017, [Online]. Available: https://izlik.org/JA33GY52FT
ISNAD
Sultanoğlu, Banu. “THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: ‘APPLE RULES’”. Muhasebe Bilim Dünyası Dergisi 19/1 (March 1, 2017): 34-57. https://izlik.org/JA33GY52FT.
JAMA
1.Sultanoğlu B. THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: “APPLE RULES”. MODAV-MBDD. 2017;19:34–57.
MLA
Sultanoğlu, Banu. “THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: ‘APPLE RULES’”. Muhasebe Bilim Dünyası Dergisi, vol. 19, no. 1, Mar. 2017, pp. 34-57, https://izlik.org/JA33GY52FT.
Vancouver
1.Banu Sultanoğlu. THE CONSENSUS AMONG US GAAP AND IFRS HAVING STEMMED FROM PRESSURE OF THE U.S. SOFTWARE INDUSTRY: “APPLE RULES”. MODAV-MBDD [Internet]. 2017 Mar. 1;19(1):34-57. Available from: https://izlik.org/JA33GY52FT

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