MicroStrategy, Inc. is a software company listed on NASDAQ. Since the company came out with an initial public offering (IPO) in June 1998, it has always been identified as a successful, growing company with positive net income. On March 20, 2000, the company announced that it would restate its financial statements for all years since its IPO. This announcement caused its share price to fall 60 percent in one day. The case summarizes management's actions and asks you to identify issues relating to revenue recognition policies under generally accepted accounting principles (GAAP).

This content is only available via PDF.
You do not currently have access to this content.