Yesterday, we saw a blatant example of the nightmare of restatement. What's more, the profits reported in 1999 were actually losses. Wall Street reacted with incredible ferocity. Basically, it will spread the costs of service contracts over the life of the contracts. Well, in the Internet world, accounting does not always appear logical.
Internet companies are under much pressure to show high growth rates.
It is tempting to push the limits of accountancy. The change for MicroStrategy means that it is not a superfast company. There would also be a loss of 43-51 cents per share versus a 15 cent gain. The company develops useful software for e-commerce companies. And, the company will continue to grow.