Microsoft Changes Accounting Methods

Microsoft has announced a change in the method by which it reports on derivatives and hedging activities and as a result will absorb an $350 million extraordinary loss on its first quarter financial statements. Microsoft's CFO, John Connors, claims that reporting the loss will not have a significant impact on the company.

The company is also changing the way in which revenues are reported, by breaking out certain services and software types as separate line items. Revenue will now be reported in the following groups: desktop software, enterprise software and services, consumer software, services, and devices, consumer commerce investments, and other.

The change in revenue reporting is designed to highlight revenues from business software, consumer, and Internet products.

You may like these other stories...

For the first time since 2006, more than 50 percent of CFOs believe the US economy will show signs of improvement over a six-month span rather than remain the same or worsen, according to a new study from Chicago-based...
By Jason Bramwell, Staff Writer CPAs in New Jersey, New York, and Pennsylvania believe economic conditions in the United States will likely be the same one year from now, and while they predict higher business revenues...
By Jason Bramwell Managers in accounting, finance, and IT are cautiously optimistic about their hiring plans for the fourth quarter of 2013, according to a new hiring outlook survey from staffing firm Brilliant. ...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.