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Red Hat to restate finances
Red Hat has abruptly announced that it
will be restating its results for the last few years. The actual change
looks like a relatively small tweak: subscription income will be recognized
on a daily, rather than monthly, basis. That means that the company will
not recognize a full month's income for the first month of an RHEL
subscription unless that subscription actually starts on the first day of
the month. The end result is the deferral of some revenue to the end of
the subscription period.
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Red Hat to restate finances Posted Jul 14, 2004 0:57 UTC (Wed) by flewellyn (subscriber, #5047) [Link] Doesn't exactly sound like a huge problem. It sounds to me like they're going for a more honestmeans of accounting, but not moving away from one that was actually dishonest. Just a matter of making sure everything is above board. A different class of restatement entirely than the Enron/Worldcom/Tycho restatements.
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