Edible Apple

Under current accounting rules, Apple must recognize income for every iPhone sold over a 24-month period rather than recognize the full purchase price at the moment of sale.  This obviously dilutes the ability of Apple’s share price to accurately reflect its current financial well-being.  But there is word that Apple may soon be granted special permission to ignore this accounting quirk, and if so, CNBC analyst Jim Cramer anticipates big things ahead for Apple’s share price.

Cramer notes that if the change in accounting procedures takes effect, Apple’s earnings in 2011 may increase from $9 a share to $12 a share.  All told, Cramer put a new price target of $264 a share for Apple stock, up from his previous target of $200.