Reply to post: Does their answer match their balance sheets?

We lose money on repairs, sobs penniless Apple, even though we charge y'all a fortune

SVV

Does their answer match their balance sheets?

Surely in the accounts they can only record the actual cost of parts and labour involved for a repair. And the point of a warranty scheme is that it is a type of insurance where most people who buy one don't claim, so what they paid contributes to the cost of repairs of those who do claim. The warranty price will be set extremely carefully in order to ensure Apple don't make a loss from this, and the accountants will have spent a lot of time working this out carefully.

So I'm very dubious about the claim that you can record "the full price they would have paid if not covered by warranty" on your blanace sheets as an actual loss in this straightforward way. If it is allowed, then some accounting rules need changing rapidly, as it would be possible for any company to dream up similar types of "what-if losses" in order to avoid having to report any profits at all.

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