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Microsoft's interim reporting practices of showing budgeted

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In 2002 the SEC investigated Microsoft's accounting practices that occurred during the late 1990s. The Commission found that Microsoft typically reported budgeted marketing expenses in its interim reports. At year end, Microsoft reported actual marketing expenses in its annual report. Argue for or against Microsoft's interim reporting practices.

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Solution Summary

The expert examines Microsoft's interim reporting practices of showing budgeted. Your response is 126 words and argues against this practice.

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Microsoft's practice is not generally accepted accounting principle practice. There is no provision in GAAP for booking expected expenses (budget) and then plugging actual in the final quarter to" true up" to year end ...

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