Premium Essay

Microsoft

In:

Submitted By dealand
Words 969
Pages 4
June 30, 1999  common belief: was that the investigation involved the company’s deferral of revenue and other undisclosed reserve accounts .

>1986 (going public) financial performance: no extraordinary. Revenue: 43% per year (In every quarter never >15%) & operating income: 49% per year. Net income: increased from the same quarter in the prior year.
1999, June: cash and short-term investments: $17 billion; assets $37 billion; book value of equity $28 billion.
Overall: stable growth 1986 - mid 1999.
For software developers: 2 KEY AREAS in which the standards at the time allowed flexibility: software development costs and revenue recognition  Microsoft: conservative method of reporting.

Software Development Costs
GAAP: software development costs: must conform to Statement of Financial Accounting Standards (SFAS) No. 86, Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed. The Financial Accounting Standards Board (FASB) issued the Statement in 1985 as a response to industry concerns that treating software development costs in a similar fashion to research and development costs (i.e., expensed as incurred) led to a severe mis-matching of costs and related revenue.
The Statement BERLAKU UNTUK: developed software & purchased software.
Isi Statement: costs incurred internally in creating a computer software product, shall be charged to expense when incurred as research and development until technological feasibility (kemungkinan) has been established for the product. Technological feasibility is established upon completion of a detail program design or, in its absence, completion of a working model. Thereafter, all software production costs shall be capitalized and subsequently reported at the lower of unamortized cost or net realizable value . Capitalized costs are amortized based on current and future revenue for each

Similar Documents

Premium Essay

Microsoft

...Gaining Familiarity Microsoft was founded as a partnership between Bill Gates and Paul Allen in Albuquerque New Mexico in 1975 and incorporated in 1981. Product: Microsoft develops, manufactures, licenses and supports a wide range of software products and computing devices. Software products: Scalable operating systems for servers, personal computers, intelligent devices, server applications software development tools Customers: Consumers,Small and medium sized organizations, enterprises, educational institutions, ISPs, application developers and original equipment manufacturers (OEM) Consumers: individuals in businesses, government agencies, educational institutions, Distribution: OEM licenses, organizational licenses, online services and products, retail packaged products Geographic sales and marketing regions: South Pacific and Americas region; Europe, Middle East, and Africa region; Asia region Business strategy: Development of a broad line of software products for information technology professionals, knowledge workers, developers, and consumers, marketed through multiple channels of distribution Competitors: Microsoft competitors are primarily in the Development Tools, Operating Systems & Utilities Software industry. Microsoft also competes in the Accounting & Finance Software, Collaborative Software, and Content & Document Management Software sectors. Competitors include: IBM, Sun Microsystems, Oracle, AOL-Time Warner, Apple, Corel ...

Words: 637 - Pages: 3

Premium Essay

Microsoft

...Microsoft’s Xbox Student’s Name: Glen F. McGregor Institution’s Name: Northwood University Microsoft’s Xbox This research paper presents the marketing strategy and philosophy used by Microsoft in selling their gaming console, the Xbox. The paper will evaluate and describe in depth the marketing of Xbox gaming and system. The research and assessment has been conducted by the developing company, Microsoft Corporation. Xbox comes in a variety of versions. One of the most popularized consoles is the XBOX 721X, a system upgrade that will be released to the market in 2015 (Lacher, Roth, Keller, & Schumacher, 2004 ). The earliest Xbox was in the market in 2001. It was marketed as being one of the leading gaming systems of the time. As technology advanced, the Xbox advanced too. The Xbox360 was brought to the market in the mid 2000’s. A new year calls for new surprises. In 2015, Microsoft will release the Xbox721x. The question then is, what strategy has Microsoft adopted in marketing the Xbox gaming console? Advertisement A new gaming system always comes with a lot of the excitement from the users. However, to know that a new product has been released to market, a company has to invest in advertising. There is a need for good advertising. Microsoft’s advertising has never disappointed its clients. It always meets virtually all consumer expectations. Generally, when Microsoft’s name is on a product...

Words: 1862 - Pages: 8

Premium Essay

Microsoft

...Microsoft Corporation Thesis Statement : Microsoft is a giant multinational organization that deals mainly in software products for computing devices. In this thesis, we shall examine how Microsoft has implemented the organizational concepts of Organizational Structure, Organizational Culture and Human Resources Practices in achieving its mega-success. Introduction to Microsoft Microsoft Corporation is a large American multinational company that develops, licenses, markets and supports software products for different computing devices especially the Personal Computer. Bill Gates and Paul Allen founded it in 1975 in Albuquerque, New Mexico. It is presently headquartered in Redmond, Washington. It has over 76,000 employees in 102 countries. Its best-selling products at present are Microsoft Windows Operating System and the Microsoft Office Suite consisting of Word (for word processing), Excel (for spreadsheets), Powerpoint (for presentations), Outlook (email client), Access (database management system). These two products enjoy 90% of the market share in their categories. An original Windows advertising blurb says "Windows will instantly deliver you a more productive present. And a leap into the future." (Microsoft timeline). History of Microsoft : In 1975, Bill Gates and Paul Allen set to work to adapt the BASIC (Beginner’s All-Purpose Symbolic Instruction Code) computer programming language to the first Personal Computer named “Altair 8800”, launched by MITS (Micro...

Words: 2249 - Pages: 9

Premium Essay

Microsoft

...PROJECT: Microsoft 1. Description of Company a. Organizational Description – Microsoft is a computer company based out of Washington. Since the launched in 1975, the company has grown to be the leading software organization in the world, providing services to Fortune 500 companies, predominate universities, and in the homes of millions of citizens. Microsoft is responsible for the creation of every day uses for us today, such as operating systems, graphical user interfaces (GUI), Microsoft Word, Microsoft Excel, and most importantly, the Xbox. b. History – Paul Allen approached Bill Gates about starting a company that would develop and sell parts for the Altair 8800, which was the first personal computer to market. The duo believed that they could build a better computer that would be user-friendlier, so Bill Gates dropped out of Harvard and the two acquired a team to create Microsoft. The name was derived from the words “microcomputer” and “software”. The company was incorporated in 1981, moved their soon to be enterprise to Washington. Focusing on the software side of the computer industry, Microsoft created the MS-DOS operating system, which was the beginning of software, as we know it today. c. Current Situation – Currently Microsoft is still the leading software company, with Satya Nadella leading the way as the CEO. Former Chief Software Architect, Bill Gates retired in 2008, but remains on the company’s board of directors. Microsoft has since...

Words: 1217 - Pages: 5

Premium Essay

Microsoft

...Zizhang Huang 07/19/2012 Reflection Paper Introduction Microsoft, which is the largest software corporation measured by revenue, was founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington. It is a multinational corporation which develops and sells basic home computer operational system and other supporting software. Relating to what we learned in chapter 3, we can know that the structure of Microsoft is Hybrid Structure which is combined Matrix Structure and Geographic Structure. In this essay, I will write about the detail of Microsoft’s structure. Microsoft’s Matrix Structure In 2010, they have 5 product divisions: Windows & Windows Live, which handles the operating system like Windows 7 for home computer and Windows Mobile for smart phone. Server and Tools, which is the division for internet server software like E-mail server. Online Services, which responsible for the online advertising and search engine of Bing. Business Division which is a developing division related to commercial using software like Microsoft Office. Entertainment and Device which is in charge of the game platform like XBOX or other computer games. Also they have the departments like Design, Manufacturing ,Marketing ,and so on. They have not only horizontal communication among all these departments in one specific division, but also vertical communications among all the divisions in one specific department. Also the employees will transfer into different divisions if necessary...

Words: 457 - Pages: 2

Premium Essay

Microsoft

...Instructor's Name Course Title 2 February 2016 Microsoft           Microsoft Corporation  Introduction Microsoft Corporation is a multipurpose and multinational company based in America. The corporation is headquartered in the Redmond, Washington. It mainly focuses on the development, licensing, supporting and selling of the computer electronics, computer software, personal computers and the affiliate services. The corporation is mainly recognized for its software products including the operating systems, the Microsoft office suite among others. It has a high profile reputation of quality services and products that are consumed by both large-scale and small-scale consumers. The paper intends to analyze and deduce the factors of operation of the corporation. That includes the mission statement, the vision statement, culture, SWOT analysis amongst other attributes that determine the extent in which the corporation is an outstanding performer. Mission, Vision, Goals, and culture Mission At Microsoft, the central mission is to enable the people, as well as, the businesses across the international borders to realize their absolute potential. Particularly, the corporation considers it a mission to focus on the commitment to the customers. As such, the corporate attempts to articulate the full measure of the mission by striving to ensure that it creates outstanding technology. The technology is also developed...

Words: 2909 - Pages: 12

Premium Essay

Microsoft

...Company History: With annual revenues of more than $32 billion, Microsoft Corporation is more than the largest software company in the world: it is a cultural phenomenon. The company's core business is based on developing, manufacturing, and licensing software products, including operating systems, server applications, business and consumer applications, and software development tools, as well as Internet software, technologies, and services. Led by Bill Gates, the world's wealthiest individual and most famous businessman, Microsoft has succeeded in placing at least one of its products on virtually every personal computer in the world, setting industry standards and defining markets in the process. Origins of an Empire Bill Gates was born in Seattle in 1955, the second of three children in a well-to-do family. His father, William H. Gates II, was a lawyer, while his mother, Mary Gates, was a teacher, a regent of the University of Washington, and member of several corporate boards. Gates was first exposed to computers at school in the late 1960s with his friend Paul Allen, the son of two Seattle librarians. By the time Gates was 14, the two friends were writing and testing computer programs for fun and profit. In 1972 they established their first company, Traf-O-Data, which sold a rudimentary computer that recorded and analyzed traffic data. Allen went on to study computer science at the University of Washington and then dropped out to work at Honeywell, while Gates enrolled...

Words: 1493 - Pages: 6

Premium Essay

Microsoft

..."Microsoft Corporation, is a multinational computer technology corporation with global annual revenue of US$44.28 billion and 71,553 employees in 102 countries as of July 2006. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. Headquartered in Redmond, Washington, USA, its best selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software, each of which has achieved near-ubiquity in the desktop computer market. Microsoft possesses footholds in other markets, with assets such as the MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia. The company also markets both computer hardware products such as the Microsoft mouse as well as home entertainment products such as the Xbox, Xbox 360 and MSN TV" ("Microsoft").  By law a monopoly is not allowed to exist in the US. It has been long debated whether Microsoft is a monopoly or not? Among other charges Microsoft was charged with "monopolizing the computer operating system market, integrating the Internet Explorer web browser into the operating system in an attempt to eliminate competition from Netscape, and using its market power to form anticompetitive agreements with producers of related goods" (SWLearning).  Firstly, with the operating system market there are no actual barriers to entry. Any one firm can enter into the market and introduce their operating system. A number...

Words: 879 - Pages: 4

Premium Essay

Microsoft

...Microsoft Name Institution Microsoft 1.0 Introduction Financial management is the efficient management of funds in such a way that an organization can achieve its objectives (Brigham & Ehrhardt, 2014).A Company either has short-term objectives or long-term goals. However, these depend on the planning phase of a particular Company. Several U.S publicly traded Companies provide attractive investment opportunities to investors. One of my clients seeks to invest in Microsoft Corporation. Microsoft is a multinational Corporation based in America. It specializes in technology products. The headquarters for Microsoft are in Washington a place known as Redmond. This Company manufactures, develops, licenses, sells and supports consumer electronics, computer software, services and personal computers. Bill Gates and Paul Allen initiated this Company way back in 1975. My client wishes to invest in Microsoft. Analyzing Microsoft stock and financial performance is critical to allow me advice my client appropriately. 2.0 An Overview of Microsoft Corporation Microsoft is best known for its software products such as the line of operating systems, Microsoft Windows, Internet Explorer, Microsoft Office suite, Skype and Edge web browsers. Microsoft is the world’s largest software producer or maker by revenue. Microsoft is one of the most valuable companies in the world (MSFT: Summary for Microsoft Corporation- Yahoo! Finance). Microsoft...

Words: 4833 - Pages: 20

Premium Essay

Microsoft

...UNIT 5 – SPECIFICALLY BUSINESS MICROSOFT CORPORATION ABSTRACT In this paper the writer will be discussing Microsoft’s business structure. The organizations socioeconomics will be addressed, along with the business environment and legal issues. The writer will be describing the multinational, multifaceted structures of management and the operational factors that go along with it. The complexities of being one of the largest, most successful entities in the world and all the finances involved with that position. Some of the problems encountered in the conglomerate make up of Microsoft organization will be analyzed. And of course, due mention will be made in regards to the leadership and guidance behind the innovation and accomplishments of this business. Mr. Bill Gates, Microsoft’s chairman and chief software architect. The man, the myth and the legend behind Microsoft and a key factor in the role of technology and the potential outcome of the computer software industry. Microsoft Corporation is a lot more than the largest software company in the world. Microsoft is a cultural phenomenon! In 1972 a nineteen year old young man had a vision, a passion and...

Words: 964 - Pages: 4

Premium Essay

Microsoft

...Strategic Initiative Microsoft The beginning of the computer generation started in 1975 with Paul Allen and Bill Gates. Throughout the years the company has developed into one of the top leading company within the computer, IT, gaming system, and music environment. With any major company its progress is the development of a strategic plan implemented into the development and increase of revenues. For a Microsoft the profit margins have developed and improved through the years alone with it is planning and developing products. The discussion of Microsoft’s strategic planning, financial planning, and the risks the business takes to increase it financial gains. Strategic Planning Microsoft has witnessed important progress up until fiscal year 2012 in terms of revenue, cash flow, and ensuring the liquidity of its assets to reassure investors over their interests. The Microsoft Investor Relations Annual Reports (2013) website states that the fruition of Microsoft’s performance manifested in the past few years with its continual revenue growth, which rose 12% from 2010 to reach $69.9 billion in 2011, and continued to rise to a record $73.7 billion in 2012. Furthermore, cash flow from operations went up $2.9 billion in the 2011 fiscal year to reach $27 billion, and climbed another $4.6 billion to reach $31.6 billion in fiscal year 2012. The Microsoft Investor Relations Annual Reports (2013) website states that the measures taken to facilitate liquidity proved to be...

Words: 1788 - Pages: 8

Premium Essay

Microsoft

...Company Description Microsoft's ambitions are anything but small. The world's #1 software company provides a variety of products and services, including its ubiquitous Windows PC operating systems and Office software suite. Microsoft also makes video game consoles (Xbox), CRM applications (Microsoft Dynamics), server and storage software, and digital music players (Zune). The company has used acquisitions to bulk up its presence in markets such as online advertising, mobile devices, and enterprise software. The company makes more than half of its sales in the US. Management style From Microsoft's founding in 1975 until 2006, Gates had primary responsibility for the company's product strategy. He aggressively broadened the company's range of products, and wherever Microsoft achieved a dominant position he vigorously defended it. He gained a reputation for being distant to others; as early as 1981 an industry executive complained in public that "Gates is notorious for not being reachable by phone and for not returning phone calls."[38] As an executive, Gates met regularly with Microsoft's senior managers and program managers. Firsthand accounts of these meetings describe him as verbally combative, berating managers for perceived holes in their business strategies or proposals that placed the company's long-term interests at risk.[39][40] He often interrupted presentations with such comments as, "That's the stupidest thing I've ever heard!"[41] and, "Why don't you just give up...

Words: 1975 - Pages: 8

Premium Essay

Microsoft

...Factor Description Microsoft Company Resources C1.Brand equity -Brand value 76.65B(18) C2. Software-Windows 7 and Office 2010(sold at record rates At 2011, more than 400 million Windows 7 licenses and 100 million Office 2010 licenses)(41) Competence C3.Research & development (More than 60 area of computing)(22) C4.Intellectual property (Provides significant value to the company to drive innovation)(23) Infrastructure C5. Operate business in five segments, 94000 employees, do business in worldwide & have offices in more than 100 countries.(54) Strengths C6. Largest operating system in the world (windows) – 92% of the market share.(24) Weakness C7. Lack of innovative company culture. (The employees are competing with each other - not with other companies)(24) C8. Weak in growth area like smart phone, internet search engine (9) Competition Apple Google Resource C9.Globally recognized brand name and research & development department (4) C9.Brand name (ranking in 3,value $107b)(17) Competence C10. Well thought-out plan to deliver strong products and to create an Apple culture (MacBook air, iphone5) (30) C11. Innovative design and technology (iPhones, iPod)(30) C10.Dominating search engine (market share 81.19%)(14) Infrastructure C12. Operates business through five reportable segments...

Words: 493 - Pages: 2

Premium Essay

Microsoft

...Microsoft is an organization that has been around for many years but people fail to realize how Microsoft has innovated its company and its products. Microsoft has several products that have innovated over time like the surface tablet, Microsoft Sync for vehicles and Microsoft office. Organizations like Apple Inc. and Amazon were ahead of Microsoft with the iPad and Kindle, leaving Microsoft to release the surface tablet. The surface tablet is a tiny touch screen tablet with an attachable keyboard, this tablet is more universal because of the Microsoft Office setting that is already installed unlike the iPad which makes business meeting easier and the detachable keyboard makes for easy pictures at a soccer game. The surface tablet does the same as a home computer and still works as an on the go tablet. Another innovation is the Microsoft Sync in which Microsoft joined with Ford to create a software that allows drivers to never take their eyes off the road. The Microsoft Sync depending on the package will allow the driver to answer calls, reply to text, play apps such as Pandora and receive turn by turn directions by simply talking to the software. Microsoft’s biggest innovation is Microsoft Office, almost every organization, college student and local business owner uses Microsoft Office to accomplish goals. Microsoft has made writing papers and creating power point presentations easy and fun. There are several innovation methods, a common method that Microsoft uses is incremental...

Words: 454 - Pages: 2

Premium Essay

Microsoft

...Microsoft Reports Loss After a Write-Down By NICK WINGFIELD SEATTLE — An accounting charge related to Microsoft’s ill-fated acquisition of an online advertising business led to a loss for the software giant’s last quarter, its first in more than two decades as a public company. Related * Times Topic: Microsoft Corporation But while that loss can be played down as an anomaly for a company that has been a reliable moneymaker for decades, weak sales in Microsoft’s Windows business cannot. Microsoft said on Thursday that its revenue from Windows fell 13 percent in the fiscal fourth quarter, which ended June 30. Windows sales looked worse than they really were in part because Microsoft had to change how it recognized that revenue because of an offer it has extended to people who buy PCs running Windows 7. Under that offer, users can pay $14.99 to upgrade to Windows 8 when it comes out in October. If Microsoft had not had to defer a portion of its Windows sales — $540 million in this case — its Windows revenue would have declined 1 percent, still a dismal performance that underscores the challenges in the traditional computer business right now. Sales in the PC market have stagnated as consumers have diverted their technology spending to more exciting technologies, including smartphones and tablet computers like the iPad. Microsoft and other companies in the PC industry are hoping to reignite growth in the business with the release of Windows 8, an operating system that...

Words: 686 - Pages: 3