How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 500.64

-0.5%

9:37 AM EST

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To: 16yearcycle who wrote (9493)	7/19/1998 10:33:00 PM
From: DownSouth	Read Replies (1) of 74651

>You book the revenues as the money comes in. This is as far from real world as it gets. I am not at all familiar with MSFT's accounting practices. But I can tell you that it is a very common, indeed, normal, practice for software and service companies in the IT industry to realize revenue for service contracts and subscription services on a month by month basis as the service is delivered, regardless of whether the customer pays up front or not. If they did not do it this way, then they would carry a liability to offset the money booked before the service is delivered.

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