accounting
Latest
Olympus' Tokyo offices raided over accounting scandal
Eke. A nearly-century old outfit is currently giving up office space to Japanese prosecutors, who today moved in on Olympus' Tokyo facilities in a raid surrounding an ongoing accounting investigation. According to reports from The Wall Street Journal and Reuters, the scandal involves many billions of dollars -- "irregularities" that have raised serious concerns about the outfit's handling of funds. It's bruited that the company has been running a scheme to conceal over $1.5 billion in investment losses, and we're told that the raid should pass right on through Olympus' headquarters and into the "homes of executives involved in the cover-up." All of this follows an admission last month that the firm had used "inflated payments made in acquisitions in recent years," and while it remains unclear what all of this means for its future, there's no doubt a few dark months are ahead as things sort themselves out. So much for looking pretty for the camera, eh?
Microsoft accounting shuffling resulted in higher revenues for Windows division
Microsoft's Windows division has been on something of a roll recently, but a deeper look into the company's financials seems to indicate that the reported numbers might look better than reality. Information Week has done some deep digging into Microsoft's recent SEC filings and found that several bookkeeping changes resulted in significantly increased reportings of revenues in the company's Windows division. Revenues that had been assigned in previous quarters to other divisions within the company -- mostly the Entertainment and Devices unit which includes highly successful businesses such as Xbox -- were, in this past quarter, re-assigned to the Windows operating system division. So just how much money was moved? Well, according to Information Week and the relevant SEC filings statements, about $259 million, or a boost of 6.5% in revenue to the division overall for a total of $4.24 billion rather than the $3.98 billion originally stated for Q1 2010. This also resulted in a 25% reduction in revenue for EDD, while the total -- $12.92 billion -- stayed exactly the same. Of course, all these bookkeeping maneuvers mean that Redmond's Windows division looked like it was making a decent amount more cash than it actually was, and when taking into account another complex move -- that of deferring $1.5 billion in upgrade revenues from Windows Vista machines sold in Q4 2009 to Windows 7 in Q1 2010 -- the resulting picture is a bit different than it would appear on the surface. Ultimately, it looks like Microsoft raked in an 11% increase in Windows revenue rather than the 66% reported, when removing both the bookkeeping changes from other units and the upgrade deferrals. Of course, this is all apparently technically on the up-and-up, in terms of financial reporting is concerned, but it does give some insight into the stunning profits recorded in the Windows division as of late.
Standards board changes subscription accounting rules, Apple CPAs drunk with power
We'd heard Apple was pushing the Financial Accounting Standards Board to change the rules by which Cupertino's accountants reported iPhone and Apple TV revenue, and it looks like the effort was successful. The new rules allow Apple (and other companies like Palm) to report revenues on products that bundle hardware and software all at once, instead of parceling out the revenue over time using subscription accounting to enable free software upgrades. For investors, that means Apple's quarterly earnings reports will more accurately reflect the state of the company's cash flow, but we're more interested to find out if this means iPod touch OS updates will be free now, since the previous rationale for charging was that iPod revenue wasn't recorded using subscription accounting. We've got a feeling Apple's all too happy to take your $4.95, but we can hope, right? [Via MacRumors]
iPod touch fee could go bye-bye
Chris Foresman over at Ars Technica has an interesting pronouncement: A rule governed by the Financial Accounting Standards Board, that's been heavily lobbied for by Apple and other electronics companies, may be enough to lift the charge that iPod touch owners have had to pay for updates of significant features to their devices. It's complicated, but it all has to do with "subscription accounting" -- devices that gain "significant new functionality" after their sale, like the iPhone, have to be reported over a series of years rather than all at the same time (presumably because the revenues associated with the product were the result of a series of updates, not just one lump sum). For the iPhone, it's fine -- they have subscription charges associated with them over two years anyway. But the iPod touch is different -- because Apple doesn't want to report the sales of those devices over a period of time, they've had to charge minimum fees for updates -- the $10 (and more recently, $5) that iPod touch owners have paid for the firmware updates. But if the new rule goes in (it still requires FASB approval), then Apple would be able to report sales of the iPod touch all together without having to worry about charging for updates, as well as the dual GAAP and non-GAAP reporting we've heard on their conference calls. Plus, as Foresman says, it would help Apple's stock price (seeing all of the iPhone's sales at once would boost investor confidence), and it would help developers who are asking all users of both the iPhone and iPod touch to update right away -- they wouldn't have to wait for iPod touch owners to find a few bucks in their couch. With the weight of Apple behind this one, we can probably expect to see the rule approved (even if they have to make some concessions). And so while iPod touch owners will probably have to still keep waiting for a camera, they at least won't have to pay for more software updates.
iBank provides yet another reason to dump Quicken for Mac
If there's one software company and product line that can raise the ire of even the most mellow Mac user, it's Intuit and the Quicken line of accounting software. While the company rightfully owns the market for home and business accounting software in the Windows world, their Mac products are beset with bugs, delays, and incompatibility issues.IGG Software has announced a "Why wait another day?" rebate program to persuade frustrated Quicken Mac 2007 owners to switch to iBank 3.5 (US$59.99). If you're a Canadian or U.S. owner who purchased iBank after July 10th, 2009, and have proof of ownership (installation disc or receipt) for either the Mac or Windows versions of Quicken or Microsoft Money, sending in a mail-in rebate form will get you a $20 incentive to switch to iBank.iBank 3.5 requires Leopard, and has a number of features that take advantage of Apple technologies. For example, you can take a picture of a receipt using your iSight camera and include that with a transaction record. MobileMe users get the advantage of automatic backups of their financial data, as well as a way to enter transactions "on the road" with the companion iBank Mobile iPhone app (US$4.99, purchased separately).All in all, the rebate is a great way to start saving money and begin working with an accounting application that was designed from the ground up to work on Macs.
Palm's subscription accounting webOS plans revealed, CPAs rejoice
Palm fans hoping webOS gets the same kind of upgrade attention Apple's been lavishing on the iPhone take note: a deck of presentation slides has revealed plans to recognize revenue from webOS products over two years using subscription accounting, so Palm can "periodically provide new software features free or charge" to customers of its "webOS products, including the recently announced Pre." If that didn't make any sense to the non-suits out there, just remember this bit of number magic is why Apple treats iPhone and iPod touch users differently when it comes to updates -- the iPod doesn't get 3.0 for free because Apple doesn't handle the math this way. At any rate, number crunchers and MAC students can head on down to the read link for lots more invigorating stuff.
Activision doing well, Blizzard has spent $200M in upkeep on WoW
Activision Blizzard (the parent company of Blizzard Entertainment) held an Analyst's Day earlier this week (in which a bunch of stock analysts sit down to crunch numbers and predict the future), and they came out of it really well -- according to those in the know, Activision Blizzard is set to do very well in the future. Buoyed by Blizzard and their other big franchises (do we have to name them by now? Call of Duty, Guitar Hero, etc.), 99% of analysts give the stock a "Buy" or "Hold" rating, and many were impressed with what Activision told them about their releases in 2009.And we got another interesting insight into just what kind of money Blizzard is looking at -- they reported on the call that since 2004, they've spent $200 million on the upkeep of World of Warcraft alone. That includes things like payroll, customer support, and hardware updates, of which there have been plenty of those. $200 million does seem like a lot, but of course when you consider just how much revenue they've pulled in via subscriptions (ten million players paying up to $15 a month, though Blizzard has all kinds of different subscription plans around the world), $200 million over four years isn't all that much.We're told, though, that that money doesn't include any development costs (pre-release, and we're not sure if it includes patch/expansion development or not, either). And it certainly doesn't include Blizzard-wide costs, like their new HQ, or what they spend on advertising, promotion, and those big events held around the world. There's no question, however, that there's plenty of money coming both in and out of Blizzard's doors.
Broadcom cofounder Henry Samueli reaches plea agreement, admits he lied to SEC
Broadcom's former management team is still in a heap of trouble over falsified financial statements, but it looks like co-founder Henry Samueli has managed to reach a plea deal with the Feds that'll keep him out of jail -- he's admitted that he misstated Broadcom's finances and knowingly backdated stock options issued to executives, and he'll be fined some $12M plus an additional $250K, as well as serve five years' probation. The court hasn't yet approved the deal, but compared to the "warehouse of meth" antics of Henry T. Nicholas III, Broadcom's other co-founder, a little accounting chicanery seems positively straightlaced, you know?
Fujitsu subsidiary dinged for booking fictitious sales
While you may assume that three's company, it looks like Fujitsu Kansai Systems has little choice but to join the dubious trio in yet another round of bookkeeping scandals. Aside from questioning the quality of accounting curriculums in Japan, parent company Fujitsu is being faced with news that one of its subsidiaries allegedly "booked fictitious sales," and while we're sure it wishes the slight dip in stock prices were the only consequence, we're also hearing that "other companies may be involved with the bogus accounting at the software-consulting and sales unit." Of course, spokespersons for the company simply reiterate that investigations are ongoing, but at least one instance of circular sales involving NAJ has reportedly been divulged. So, who's next? [Warning: Read link requires subscription]
Dell finds evidence of accounting errors and misconduct
RuRow Raggy -- in a wee-hour, tail-between-the-legs announcement, Dell just admitted financial "accounting errors" and "evidence of misconduct." This, after a months-long, independent review by the company's internal audit committee which, incidentally has yet to complete its investigation. It's not clear if any of this will require the restatement of previous earnings reports although second, third and fourth quarter statements from Dell all remain preliminary and have yet to be filed with the SEC. An analyst said to have spoken to Dell's management about the matter in "general terms" calls the situation "serious" but "not life threatening" to Dell. However, we'd feel a bit better if s/he had talked to the SEC instead. After all, they've been probing Dell's financials since August of 2005. It's also not clear if the alleged Intel kickbacks play any role in the matter. However, the resignations of both Dell's former CFO and Kevin Rollins (former CEO) in recent months is starting to look suspiciously familiar. Hey, welcome back Michael, aren't you glad you came?[Thanks, LordFarkward]
Checkout - point of sale for Mac (beta)
Jasper Hauser and company have been busy, as Disco isn't the only thing pot on their oven. Behold: Checkout, a point of sale app (in beta) for store owners running Mac OS X. Boasting a 15 minute learning curve, Checkout has an impressive lineup of features, like: Interoperability - "export anything you want" Easy Backups - the database is just one file, with a .Mac Backup QuickPick included (hint hint to other devs) Bookkeeping super powers for maximum accountant happiness Address Book syncing "Extensive" reporting High-Speed input for more better schmoozing with customers Checkout's site offers a number of screencast Quicktours to help you get an idea of everything it can do. I personally don't run a retail store, but from looking at Checkout, I'm starting to wish I did. While Checkout is in beta, pricing and an official release date are still TBD.
Quickbooks 2007 v9.0, now with native Intel support
Well Adobe may not care enough to release Universal Binary updates, but Intuit seems to care, at least a little. Today they released Quickbook 2007 v9.0. Quickbooks, as you probably already know is a popular accounting app aimed at small businesses. Things of note in this upgrade include: Track payments, sales tax and inventory IMPROVED Create and print deposit slips NEW Customize forms using the Layout Designer NEW Customize toolbar IMPROVED Universal binary version for Intel- and PowerPC-based Macs NEW Share data between Mac and Windows IMPROVED Comprehensive in-product help IMPROVED Interactive Tutorial Center NEW Although Quickbooks users themselves don't seem all that impressed with the program, every step toward native Intel support for Macs for all is a good thing.Despite being a small business owner, I've never had any use for Quickbooks. Always seemed like overkill for my needs. But if it suits you and you've been wondering whether or not to upgrade, you might wait until the dust settles as there are already several nasty bug reports showing up on sites like MacFixit.