Microsoft amends 'clerical errors' in financial reports
Published: 26 Mar 2002 15:26 GMT
Microsoft has amended its last two quarterly reports to fix what it called "clerical errors."
The changes pertain to unearned revenue, an accounting term used to refer to money received for services not yet rendered, such as advance payments. It is considered a liability on a company's balance sheet and is eventually transferred to income when the service is performed or the product is sold.
According to documents filed with the Securities and Exchange Commission, Microsoft incorrectly reported accruing $1.104bn in unearned revenue and recognising $914m in unearned revenue as income in the fiscal first quarter.
The correct amounts for that quarter were actually $2.069bn in new unearned revenue and recognised $1.879bn of unearned revenue.
The company's fiscal second-quarter report was also amended to reflect the changes. Microsoft said the changes had no impact on net cash from operations.
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