More Apple pwnage

[Asher]

Originally posted by Kidicious
For one, you said that the PR dept is putting out the sales numbers.

Accounting departments do not make press releases.

Originally posted by Kidicious Two, you don't seem to know what is required of accountants.

We are not discussing accountants. I don't care about accountants. WTF are you talking about?

[Kidlicious]

Accountants can not lead the public to believe that the product is being sold if it is sitting in inventory. If the amt in inventory isn't material then there's no problem. But you are claiming that most of the sales are sitting in AT&T inventory.

[Kidlicious]

Originally posted by Asher

Accounting departments do not make press releases.

No, but they produce the sales figures.

[Asher]

Originally posted by Kidicious
Accountants can not lead the public to believe that the product is being sold if it is sitting in inventory. If the amt in inventory isn't material then there's no problem. But you are claiming that most of the sales are sitting in AT&T inventory.

You still do not comprehend. This is simple.

Apple sells to AT&T. AT&T then has trouble selling these, so they sit in inventory, or in warehouses. Apple is not lying when they say they sold X many units, they just are not all in the hands of consumers.

[Asher]

Originally posted by Kidicious
No, but they produce the sales figures.

Yes. And?

[Kidlicious]

Originally posted by Asher

You still do not comprehend. This is simple.

Apple sells to AT&T. AT&T then has trouble selling these, so they sit in inventory, or in warehouses. Apple is not lying when they say they sold X many units, they just are not all in the hands of consumers.

That kind of thing needs to be disclosed to the public. Any material information that someone would want to look at needs to be made public.

[Kidlicious]

In the quarterly reports anyway. And sales figures for the iphone have been disclosed in the latest quarterly report.

[Kidlicious]

This is all so stupid anyway Asher. There's no GD stockpile of phones at the AT&T stores. OMFG you are so pigheaded.

[Asher]

Originally posted by Kidicious
That kind of thing needs to be disclosed to the public. Any material information that someone would want to look at needs to be made public.

And this isn't public knowledge? This is how retail stores work.

Don't you know anyone who ever worked in a retail store...?

[Asher]

Originally posted by Kidicious
This is all so stupid anyway Asher. There's no GD stockpile of phones at the AT&T stores. OMFG you are so pigheaded.

There's not? Do you have any indications for that? The indications we have is no one is buying the phones at AT&T stores -- they go to Apple stores to do it.

[Kidlicious]

Originally posted by Asher

And this isn't public knowledge? This is how retail stores work.

Don't you know anyone who ever worked in a retail store...?

wtf?! This has nothing to do with operation of a retail store. Accountants can not leave out material information in their public reports.

[Asher]

Originally posted by Kidicious
wtf?! This has nothing to do with operation of a retail store. Accountants can not leave out material information in their public reports.

Why do you keep coming back to accountants?

I do not understand why this is so difficult. AT&T operates retail stores. They buy their merchandise from Apple.

Apple's accountants count AT&T's merchandise as "sold", regardless if they went to an end-user or not.

[Kidlicious]

Originally posted by Asher

Why do you keep coming back to accountants?

I do not understand why this is so difficult. AT&T operates retail stores. They buy their merchandise from Apple.

Apple's accountants count AT&T's merchandise as "sold", regardless if they went to an end-user or not.

I've already explained to you why it is important for Apple (and their investors) to know if the products are being sold to end users or sitting in stockrooms.

[Asher]

Originally posted by Kidicious
I've already explained to you why it is important for Apple (and their investors) to know if the products are being sold to end users or sitting in stockrooms.

It is important for them to know. They are under no obligation to issue a press release or include this in their report. This is why they do NOT include it in their reports, or issue press releases. Ditto for game console manufacturers.

Which is why they do not illustrate the real situation. Which is why activation numbers are far more relevant.

[Kidlicious]

Originally posted by Asher

It is important for them to know. They are under no obligation to issue a press release or include this in their report. This is why they do NOT include it in their reports, or issue press releases. Ditto for game console manufacturers.

Which is why they do not illustrate the real situation. Which is why activation numbers are far more relevant.

Wrong

Basic concepts
To achieve basic objectives and implement fundamental qualities GAAP has four basic assumptions, four basic principles, and four basic constraints.


[edit] Assumptions
Economic Entity: assumes that the business is separate from its owners or other businesses. Revenues and expenses should be kept separate from personal expenses. This applies even for partnerships and sole proprietorships. As corporates, they are considered separate legal entities.
Going Concern: assumes that the business will be in operation for a long time. This validates the methods of asset capitalization, depreciation, and amortization. Only when liquidation is certain this assumption is not applicable.
Monetary Unit: assumes a stable currency is going to be the unit of record. The FASB accepts the nominal value of the US Dollar as the monetary unit of record unadjusted for inflation.
Periodic Reporting: assumes that the business operations can be recorded and separated into different periods (most common periods are months, quarters and years). This is required for comparison between present and past performance.

[edit] Principles
The historical cost principle requires companies to account and report based on acquisition costs rather than fair market value for most assets and liabilities. This principle provides information that is reliable (removing opportunity to provide subjective and potentially biased market values), but not very relevant. Thus there is a trend to use fair values. Most debts and securities are now reported at market values.
The revenue recognition principle requires companies to record when revenue is (1) realized or realizable and (2) earned, not when cash is received. This way of accounting is called accrual basis accounting.
The matching principle. Expenses have to be matched with revenues as long as it is reasonable to do so. Expenses are recognized not when the work is performed, or when a product is produced, but when the work or the product actually makes its contribution to revenue. Only if no connection with revenue can be established, cost can be charged as expenses to the current period (e.g. office salaries and other administrative expenses). This principle allows greater evaluation of actual profitability and performance (shows how much was spent to earn revenue). Depreciation and Cost of Goods Sold are good examples of application of this principle.
The full disclosure principle. Amount and kinds of information disclosed should be decided based on trade-off analysis as a larger amount of information costs more to prepare and use. Information disclosed should be enough to make a judgment while keeping costs reasonable. Information is presented in the main body of financial statements, in the notes or as supplementary information.

[edit] Constraints
Cost-benefit relationship: the benefit of providing the financial information should also be weighed against the cost of providing it.
Materiality: the significance of an item should be considered when it is reported. An item is considered significant when it would affect the decision of a reasonable individual.
Industry practices: accounting procedures should follow industry practices.
Conservatism: when choosing between two solutions, the one that will be least likely to overstate assets and income should be picked.