Professional Documents
Culture Documents
What is Microsoft?
Microsoft Corporation is a software company based in Redmond, Washington. Microsoft's flagship product, the Windows operating system, is the single most popular operating system for home desktop use.
The Microsoft Windows operating system started life as an optional addition to the MS-DOS operating system. The idea of a graphical user interface was pioneered by Apple Computer's Apple II and Macintosh. However, due to prior work with IBM, Microsoft successfully convinced the hardware giant to ship Microsoft Windows preinstalled on IBM personal computers. This monumental step had piggybacked Windows to be one of the most recognized software titles in history.
Accounting Policies
The specific policies and procedures used by a company to prepare its financial statements. Revenue recognition is the policy used by Microsoft.
Fixed assets
Fixed asset is an asset of a business intended for continuing use, rather than a short-term, temporary asset such as stocks. Fixed assets, also known as a non-current asset or as property, plant, and equipment. 2011 2010 Property and equipment,
net of accumulated depreciation of $9,829 and $8,629 Equity and other investments Goodwill 8,162 7,630
10,865 12,581
7,754 12,394
744
1,434
1,158
1,501
liabilities
Liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. 2011 2010
Long-term debt Long-term unearned revenue Deferred income taxes Other longterm liabilities 11,921 1,398 1,456 8,072 4,939 1,178 229 7,445
Depreciation
A method of allocating the cost of a tangible asset over its useful life. Declining Balance method is used by Microsoft for charging depreciation on its assets.
Inventories
A companys merchandise, raw-materials, finished and unfinished products which have not yet been sold.
in millions
2011
inventories 1372$
2010
740$
Dividends
The dividend a corporation pays is the amount of money, normally a portion of the profits, a board of directors distributes to the ordinary shareholders of the corporation.
As per the profit and situation company is paying dividend to their shareholders after maintaining retained earning. Year 2009 =$23 Year 2010 =$25 Year 2011 =$60
Income Statement
A financial statement that measures a companys financial performance over a specific accounting period. in millions
2011 revenue Total operating expenses Operating income Other income 69,943$ 48,782$ 27,161$ 910$ 2010 62,284$ 38,386$ 24,098$ 915$
Balance sheet
A statement of financial position of an enterprise as on particular date. It summarizes assets and liabilities owned by a firm.
In millions
Total current assets Total assets Total current liabilities Total liabilities
2011
74,918$ 1,08,704$ 28,774$ 51,621$
2010
55,676$ 86,113$ 26,147$ 39,938$
57,083$
46,175$
Notes to account
Additional information provided in a company's financial statements. Notes to the financial statements report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement. This is done mainly for the sake of clarity because these notes can be quite long, and if they were included, they would cloud the data reported in the financial statements.
Directors report
It is defined as The annual report from the board of directors to the shareholders. It mainly explains about the components of Profitability Appropriations Key financial ratios Capital adequacy Capital and net worth and dividend
Corporate governance
Corporate governance is "the system by which companies are directed and controlled". It involves regulatory and market mechanisms, and the roles and relationships between a companys management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade creditors, suppliers, customers and communities affected by the corporation's activities. Internal stakeholders are the board of directors, executives, and other employees.
Auditors report
The auditor's report is a formal opinion,or disclaimer thereof, issued by either an internal auditor or an independent external auditor as a result of an internal or external audit or evaluation performed on a legal entity or subdivision thereof (called an "auditee"). The report is subsequently provided to a "user" (such as an individual, a group of persons, a company, a government, or even the general public, among others) as an assurance service in order for the user to make decisions based on the results of the audit.