Some computer software makers' earnings likely to slide; blame it on the accountants

Article Abstract:

The earnings reported by companies in the computer software industry will be affected by new accounting guidelines put out by the American Institute of Certified Public Accounts (AICPA). The proposed rules, which are directed only at publishers of software for mainframe computer systems, would no longer allow sales and services to be reported as revenue and profits until the products are actually delivered. Industry analysts predict that the affect on sales statistics could be to reduce them by three to 30 percent; profits may drop by seven to 15 percent. Industry observers believe, however, that the changes are good for the long run because a more realistic picture of a firm's finances and performance will result. BMC Software, Computer Associates International and Goal Systems International are expected to be hit hardest because they specialize in long-term maintenance contracts. The revenues from these can no longer be reported at the time the contract is signed but must be spread out over the term of the contract. The new rules do not apply to companies that develop software for microcomputers.

Prepackaged software, Methods, Computer software industry, Software industry, Laws, regulations and rules, Accounting and auditing, Accounting, Sales, American Institute of Certified Public Accountants, column, Guidelines, Sales accounting

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Klein to resign executive post at L.A. Times

Article Abstract:

The L.A. Times executive who brought the business side of the paper in closer alignment with editorial, Jeffrey S. Klein, has resigned effective the end of the year. The senior vice president of consumer marketing and general manager for news claims that nothing at the paper has caused his departure; he simply has a desire to run a company. At age 45, and after 15 years with the paper, this is the time he has chosen to explore other opportunities. The executive reorganization occurring at the same time may or may not have effected Klein's duties.

United States, Newspapers, Newspaper Publishers, Executive changes & profiles, Media Personnel, Officials and employees, Newspaper publishing, Appointments, resignations and dismissals, Abstract, Executives, Times Mirror Co., TMC

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