In May , the FASB issued guidance to amend the accounting and disclosure requirements on fair value measurements. The new guidance limits the highest-and-best-use measure to nonfinancial assets, permits certain financial assets and liabilities with offsetting positions in market or counterparty credit risks to be measured at a net basis, and provides guidance on the applicability of premiums and discounts.
Additionally, the new guidance expands the disclosures on Level 3 inputs by requiring quantitative disclosure of the unobservable inputs and assumptions, as well as description of the valuation processes and the sensitivity of the fair value to changes in unobservable inputs. The new guidance will be effective for us beginning January 1, Other than requiring additional disclosures, we do not anticipate material impacts on our financial statements upon adoption.
In January , the FASB issued guidance to amend the disclosure requirements related to fair value measurements. The guidance requires the disclosure of roll forward activities on purchases, sales, issuance, and settlements of the assets and liabilities measured using significant unobservable inputs Level 3 fair value measurements. The guidance will become effective for us with the reporting period beginning July 1, Other than requiring additional disclosures, the adoption of this new guidance will not have a material impact on our financial statements.
Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Critical accounting policies for us include revenue recognition, impairment of investment securities, goodwill, research and development costs, contingencies, income taxes, and stock-based compensation.
A portion of revenue may be recorded as unearned due to undelivered elements. Changes to the elements in a software arrangement, the ability to identify VSOE for those elements, and the fair value of the respective elements could materially impact the amount of earned and unearned revenue. Judgment is also required to assess whether future releases of certain software represent new products or upgrades and enhancements to existing products.
Investments are reviewed quarterly for indicators of other-than-temporary impairment. This determination requires significant judgment. In making this judgment, we employ a systematic methodology quarterly that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments.
If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, the duration and extent to which the fair value is less than cost, and for equity securities, our intent and ability to hold, or plans to sell, the investment. For fixed-income securities, we also evaluate whether we have plans to sell the security or it is more likely than not that we will be required to sell the security before recovery.
We also consider specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income expense and a new cost basis in the investment is established. Goodwill We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination.
We evaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level operating segment or one level below an operating segment on an annual basis May 1 for us and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.
These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit.
The fair value of each reporting unit is estimated using a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital.
Among our reporting units, the fair value of OSD has been the closest to its carrying value. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each reporting unit.
Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers.
Judgment is required in determining when technological feasibility of a product is established. We have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released to manufacturing. The amortization of these costs is included in cost of revenue over the estimated life of the products.
The outcomes of legal proceedings and claims brought against us are subject to significant uncertainty. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. Disclosure of a contingency is required if there is at least a reasonable possibility that a loss has been incurred.
In determining whether a loss should be accrued we evaluate, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. Changes in these factors could materially impact our financial statements.
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Accounting literature also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures.
Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial statements. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period.
Determining the fair value of stock-based awards at the grant date requires judgment, including estimating expected dividends. In addition, judgment is also required in estimating the amount of stock-based awards that are expected to be forfeited. If actual results differ significantly from these estimates, stock-based compensation expense and our results of operations could be impacted.
Management is responsible for the preparation of the consolidated financial statements and related information that are presented in this report. The Company designs and maintains accounting and internal control systems to provide reasonable assurance at reasonable cost that assets are safeguarded against loss from unauthorized use or disposition, and that the financial records are reliable for preparing financial statements and maintaining accountability for assets.
These systems are augmented by written policies, an organizational structure providing division of responsibilities, careful selection and training of qualified personnel, and a program of internal audits. The Board of Directors, through its Audit Committee, consisting solely of independent directors of the Company, meets periodically with management, internal auditors, and our independent registered public accounting firm to ensure that each is meeting its responsibilities and to discuss matters concerning internal controls and financial reporting.
Frank H. Microsoft Corporation Annual Report. In millions, except percentages and per share amounts. Percentage Change Versus Stated Interest Rate. Effective Interest Rate. Interest Record Date. Interest Pay Date. Dividend Per Share. Then you can access your favorite statistics via the star in the header.
Profit from additional features by authenticating your Admin account. Then you will be able to mark statistics as favourites and use personal statistics alerts. Please log in to access our additional functions. Yes, let me download! This is an exclusive corporate function.
Get full access to all features within our Corporate Solutions. Statista Corporate Solutions. Immediate access to statistics, forecasts, reports and outlooks Usage and publication rights Download in various formats.
Statista Accounts: Access All Statistics. Basic Account. You only have access to basic statistics. Single Account. The ideal entry-level account for individual users. Corporate Account. Biggest companies in the world by market capitalization Consumer Electronics.
Lifetime global unit sales of video game consoles as of September Operating systems market share of desktop PCs , by month. As a Premium user you get access to the detailed source references and background information about this statistic. As a Premium user you get access to background information and details about the release of this statistic. You only have access to basic statistics.
This statistic is not included in your account. Skip to main content Try our corporate solution for free! Single Accounts Corporate Solutions Universities. Premium statistics. Read more. In the fiscal year , Microsoft Corporation spent In the past decade, Microsoft has slowly increased sales and marketing spending, with the annual figure rising by more than six billion U. Microsoft also spend heavily on research and development , with spending in this domain also amounting to over twenty billion U.
Microsoft Corporation Founded by Bill Gates and Paul Allen in , Microsoft has since grown into one of the most successful tech firms in the world and has experienced decades of continued success. Continuously innovating and adapting, Microsoft has come to offer different cloud computing services and its intelligence cloud segment has become the biggest revenue earner for the company. Microsoft's cloud offerings include Azure, the infrastructure platform, and Office , the collaboration suite.
Tech Industry As technology becomes further integrated into nearly all aspects of daily life, companies such as Apple, Alphabet, and Microsoft have grown into some of the most powerful entities in the world.
If you use our chart images on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. We have provided a few examples below that you can copy and paste to your site:.
If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. Stock Screener.
0コメント