Financial Accounting Blog

Monday, April 26, 2004

Revenue Recognition. The New York Times reports that Computer Associates has ended an internal investigation into its accounting practices. To do so, they restated $2.2 billion in sales that were improperly booked during 1999 and 2000.
Computer Associates acknowledged today that it had backdated $1.8 billion in contracts in the fiscal year ended March 2000, nearly 30 percent of its total sales. But the company emphasized that the sales were real and that the problem related to the timing of revenue recognition, not to falsifying contracts.