Publications
Publications
- September 1999 (Revised February 2000)
- HBS Case Collection
Microsoft's Financial Reporting Strategy
Abstract
Explores Microsoft's overall financial reporting strategy by examining the company's treatment of two accounting issues--software capitalization and revenue recognition. For both issues, the company selects accounting methods that are relatively conservative. Also discusses the issue of managing analysts' expectations and Microsoft's tendency to provide analysts with very conservative expectations for the future. Provides a forum to discuss possible reasons for Microsoft's accounting and disclosure choices and also discusses the Securities and Exchange Commission's recent investigation into Microsoft's accounting practices.
Keywords
Citation
Matsumoto, Dawn, and Robert Bowen. "Microsoft's Financial Reporting Strategy." Harvard Business School Case 100-027, September 1999. (Revised February 2000.)