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SEC Settles Microsoft Accounting Investigation

Posted by ryuzaki0 on from the cooking-the-books dept.

guttentag writes "The Securities and Exchange Commission has wrapped up its two-year investigation into Microsoft's accounting practices. The investigation focused on "cookie jar" accounting practices in which a company reports that it earned less money than it actually did, secretly storing the unreported money to artificially boost earnings in the future. The SEC called off its investigation in exchange for Microsoft's promise that it will not break the rules in the future, though the company is not admitting that it broke rules in the past. Microsoft publicly states that it has $40 Billion on hand." Gates realized a long time ago that regardless of actual performance, if you "beat estimates" people will buy your stock. So, he's arranging it so that no matter what the actual performance is, Microsoft always "beats estimates". If your analyst estimate is low 61 out of 63 times, either A) you need a new analyst or B) someone is feeding the analyst bad numbers. In this case, probably both.

7 of 277 comments (clear)

  1. Shocked! Shocked I am! by reynolds_john · · Score: 2, Funny
    Why to think that a company would attempt to find a way to continue shareholder money at all costs is simply shocking!

    I'm highly preturbed! It must be an accounting glitch, nothing more.

    We all know that a company such as Microsoft with its high upstanding ethical and moral values would never do anything to mislead the common investor.

    1. Re:Shocked! Shocked I am! by Disevidence · · Score: 2, Funny

      Slashdot Funny Comments, version 2.1

      Dripping in Sarcasm...... Check
      Having a swipe as microsoft.....Check
      Saying absolutely nothing new or interesting.. Check

      + 5 FUNNY!!!!!

      Dicks....

      --
      Think nothing is impossible? Try slamming a revolving door.
  2. Microsoft is always loosing money by ehiris · · Score: 3, Funny

    With so much product theft how can they make profits?
    :)

    "Evaluation = Evolution"

    1. Re:Microsoft is always loosing money by Anonymous Coward · · Score: 1, Funny

      but microsoft really is 'loosing' money according to the article.

  3. A promise? by ProofOfConcept · · Score: 3, Funny

    A promise? I'm not statisfied with that. I hope they made microsoft pinky swear they wouldn't do it in the future. Or at least say their mom will step on a crack and break her back.

  4. Re:It's all Politics by Anonymous Coward · · Score: 1, Funny

    You and almost every other American who had the right to vote. And he still got in.

    Let's see, five out of ten voters who bothered to vote voted for Bush/Cheney...

  5. Re:Whiny Shits by NineNine · · Score: 3, Funny

    Are you actually a moron, or are you lying on purpose?

    IBM and MSFT's past two year performance nearly identical

    Now go the fuck away and buy some RHAT stock you fucking idiot.