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11-06-2008 @ 8:39PM
For all the accountants out there, I believe its actually prescribed by SOP 97-2 (Software Revenue Recognition), due to the fact that Blizzard has expenses due to the purchase of the CD beyond the actual date of the purchase by you, they recognize the revenue associate ratably over the expenses. Its supports the principal of recognizing the revenue and associated expenses over the same time period, usually referred to as the timing principal. Don't know if IFRS has the same thing in terms of SOP 97-2 for all of the international people. There are ways companies get around this, for example Apple usually charges for software upgrades on many of their products somewhere between 1$ and 10$ such as the iPod touch. This allows them to recognize the revenue of the actual sale of the touch immediately and then declare that they are charging for the software upgrade later in the life of the product. /Accounting OffTo the guy studying for the CPA exam in this thread, don't worry too much about it, people make a much bigger deal about the test than it really is. Just make sure you leave enough time for the simulations and you will be fine, and remember if you feel like you are doing horrendously, most likely everyone taking that iteration of the test is doing horrendously too. Ohh, make flash cards for tax as well, that helped me a ton with all the different facts you have to remember. Good Luck.Rizz - CPA for a Big 4, though it don't mean much anymore
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