Accounting Changes for Internet Companies?
from the uh-oh dept
This could potentially be a big deal. A task force is starting to look at how internet companies recognize revenues. And, as someone who’s seen it happen, I can tell you the answer is “any way they possibly can”. A huge amount of “recognized revenue” is a complete farce as the money never actually touches the company, but it’s such standard practice in the valley that companies do it just to keep up. However, if the rules change, it could cause some problems for many companies.