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I chose this company because I have an interest in the computer gaming industry, both from the viewpoint of someone that is interested in playing computer games and as an investor. The topic that I have chosen to address is the issue of revenue recognition.
Revenue Recognition Analysis
I started by looking at EAs annual report (Form 10-K) for the fiscal year ending March 31, 2007. Revenue recognition is discussed in some detail. In particular, they state that revenue is recognized according to the criteria established by Statement of Position (“SOP”) 97-2, “Software Revenue Recognition”, “Modification of SOP 97-2, Software Revenue Recognition, With Respect to Certain Transactions” and Staff Accounting Bulletin (“SAB”) No...
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