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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Daniel Schuh who wrote (3287)11/22/1996 12:52:00 AM
From: Gerald R. Lampton   of 24154
 
>MSFT and deferred revenue

I want to make it very clear that I am not accusing Microsoft of anything improper. I simply want someone to explain in clear, simple English what they are doing. What are the actual accounting mechanisms they use to smooth out earnings? What are the accounting rationales? Sal listed some plausible explanations in his response, and I thank him.

How does what they do differ from what other companies do that DO get accused of improper earnings manipulation? How do you draw the line?

Again, however, I do not mean to imply in any way that what Microsoft is doing is wrong or improper.
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