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To: cfoe who wrote (7938)6/7/2000 11:42:00 PM
From: JMD  Read Replies (1) | Respond to of 10309
 
Thanks John, your explanation of deferred revenues is obviously much 'crisper' than mine. But hell, with an MBA from the Early Ice Age, I'm just glad I got to the right neighborhood! Was actually thinking that a better analogy might have been the purchase of a BART ticket [note to non SF Bay Area denizens--local rapid transit system]. If I fork out $30 for a ticket, BART is obligated to provide me with $30 worth of transport services over whatever period of time I choose to utilize them. Clearly, it would be inappropriate for BART to book the $30 sale on day or purchase--indeed it has a 'liability' (obligation) to provide those services over time. BART's liability is offset by an asset on MY balance sheet: prepaid transportation services. Software vendors wind up in the same boat for roughly the same reasons, which you articulated better than I.
O.K. guess we've kicked this topic into the dirt (and put 98% of the thread to sleep). Sorry folks, the WIND forum can now return to regularly scheduled programing: just tell the financial types how the technology will make money and let the bean counters do their thing off line. Kind regards, mike doyle



To: cfoe who wrote (7938)6/8/2000 12:13:00 AM
From: umbro  Read Replies (1) | Respond to of 10309
 
cfoent,
thanks for the additional detail on deferred revenue. On the asset side:

April 30, 2000 Jan 31, 2000
Prepaid and other
current assets 40,096 35,375


is it reasonable to assume the that majority of these asset items are pre-paid and/or buyout royalties? Or are these items, likely something along the lines of pre-paid leases, etc?