Microsoft Corporation
Case number:
A01-02-0016
Abstract
This case concerns the 1994/95 accounting policy change by Microsoft Corporation wherein the company began deferring approximately 20% of its software sales revenue.
Teaching
The case provides sufficient information for students to restate Microsoft's revenue for the period of 1995 through 2000 as if the revenue accounting change had not been under taken. The case also illustrates the use of the cash conversion ratio as a tool to help identify the presence of front-end or rear-end loading of revenues.
Case number:
A01-02-0016
Year:
Setting:
United States 1994/2000
Length:
6 pages
Source:
Library