Activision-Blizzard September results reveals box sales paradigm

Reader Comments (Page 1 of 1)

11-06-2008 @ 3:33PM

Gormakr said...

This is standard accounting practice. Revenues and expenses are generally spread over the related use of a product (oversimplified, but that's about it.)

While it does have the benefit of reducing volatility of earnings (and presumably stock prices) which is desirable, it's also common and appropriate. Their auditors would likely force this treatment in any case.

It's not related to Sarbanes Oxley - it's just GAAP (Generally Accepted Accounting Practices).

I do think that they want us to stick around and play for the long term and have fun, but the accounting is not an indication of this.

Chris
- CPA, CFA

11-06-2008 @ 4:14PM

Angel said...

True, but aren't revenues suppose to be recognized as they are earned?

If anything I believe this is related more to the P&L impact on the financials from revenue expenses.

BTW, Chris im currently studying for first my CPA exam (finance) on Nov 29.... it's killing me that WOTLK comes out this month as i can't touch it or else its bye-bye CPA study lol

11-06-2008 @ 4:20PM

Magdalen said...

@Angel, you have to give up EVERYTHING to study for the exam. It sucks hard. I took my television and main computer to my friends house so I would have no distractions. I also had 2,800 charge-hour year. Good luck.

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