The Gig May Be Up For Computer Associates
from the how-to-lie-on-your-financial-statements-for-fun-and-for-profit dept
A great article in the NY Times which explains how Computer Associates may have “fudged” their financial statements to make them look much better. It’s not clear that they did anything illegal, but they might be in trouble anyway. Basically, it looks as though they bought up lots of large companies, and changed the way they accounted for licensing revenue, so they could immediately recognize all the revenue from license from these new companies. The problem now: there aren’t any more companies to buy with whom they can do this. Definitely an interesting article in seeing how a company operates to fool Wall Street while at the same time pissing off partners and customers.