Mike_in_Helsinki

Apple's Deferred Revenues Revisited: This Was a Blow-Out Quarter

Just wondering here. You seem to be counting all of the deferred revenues as NET deferred revenues, i.e. net of Cost of Goods Sold, Expenses and Taxes. Aren't those net items recognized at the same time that the revenue is recognized? Or am I missing something here?

You state '... most of 3.288 billion dollars of deferred revenues will drop effortlessly to the bottom line'. Well, the 'bottom line' is Net Income, and the definition of Net Income is Income minus Cost of Goods Sold, Expenses, any Losses and Taxes. Seems like the Deferred Revenue needs to run through those filters, which would mean that NET Deferred Revenue is only a fraction of that figure.

Or am I just getting my accounting wrong here.

Thanks