Financial Report

Harvard Business School 9-100-027 Rev. February 16, 2000 Microsofts Financial Reporting Strategy We ar a social club known for being conservative. Greg Maffei, CFO1 On June 30, 1999, during a conference address with analysts, Microsoft Corporation announced that the kinsperson was under investigating by the Securities and convince Commission (SEC) for sure accounting practices. Although the exact focus of the investigation was not disclosed, the vernacular belief was that the investigation involved the political partys deferral of revenue and other undisclosed reserve accounts.2 cum with Background3 As the developer and manufacturer of products such as the Windows operate system, the do good Explorer web browser, and the Microsoft Office suite of applications, Microsoft was easily the close astray recognized software developer in the world. The phoners account had been well documentedin articles, books, documentaries and even a made-for-televisi on movie, Pirates of Silicon Valley. tiptop Gates and Paul Allen founded the company in 1975, with the idea that maven day there would be a computer on all desk and in every home. The companys big display came in 1980 when it negotiated with IBM to provide the operating system for IBMs new private computer.

The result was MS-DOS and by the mid-80s, Microsoft dominated the market for operating systems. The company went state-supported on March 13, 1986 at $25.75 per share. As of June 30, 1999, 1 share of Microsoft purchased at the initial globe offering was think of almost $13,000. By this time, the company also had the highest market value of any U.S. public company (approx imately $460 billion) and its CEO, Bill Gat! es, was the worlds wealthiest individual. Since going public in 1986, the companys monetary performance had been nonentity short of extraordinary (see Exhibits 1 and 2). gross and operating income grew an average of 43% and 1 Microsoft Faces Investigation By SEC over Its Accounting, Wall...If you want to get a affluent essay, order it on our website: OrderEssay.net

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