Case Assignment: Microsoft's Financial Reporting Strategy (critical essay) by Greg Maffei.
Read the Microsoft's Financial Reporting Strategy case study. (Fyi. If page does not opened. Please see attached reading material "Microsoft's Financial Reporting Strategy" case study)
Write a 5- to 6-page paper that addresses the following:
• What are the factors that likely explain the difference between Microsoft's market value of equity and its reported book value of equity?
• What effect did Microsoft's software capitalization policy have on its financial statements?
• What effect did Microsoft's revenue recognition policy have on its financial statements?
• Describe Microsoft's overall reporting strategy. Why did the company adopt this strategy and why was the SEC concerned about it?
Include a description of your approach to the issues and your solutions to the problems described in the case.
Your paper should meet the following requirements:
• 5 to 6 pages in length, not including title and reference pages
• Formatted according to the CSU-Global Guide to Writing and APA Requirements
• Include at least 3 credible outside reference sources
Reference for this Critical Thinking Assignment:
Matsumoto, D., & Bowen, R. (1999). Microsoft's financial reporting strategy. HBS No. 100027. Boston, MA: Harvard Business School Publishing.