The profits of Apple Inc., Palm Inc. and other tech companies are likely to improve, thanks to an expected rule change.

The Wall Street Journal reported that the Financial Accounting Services Board is expected to approve a change Wednesday affecting how revenue and profit is recognized from sales of computer products that combine hardware and software.

Instead of having to spread the gains over the expected two-year life of a smartphone, manufacturers would be able to book those sales and profits up-front in the quarter in which they were made.

The new rule will improve quarterly results when there is a surge in sales, but will also make sudden drops more evident.

Apple said such accounting would have boosted its third-quarter revenue of $8.34 billion by 17 percent and its $1.23 billion in earnings by 58 percent. Palm blamed most of its 81 percent third-quarter revenue decline on the current rule, which didn't allow it to book a recent surge in sales of its Pre device.