osI am always amazed by the actions of people who operate by their own set of rules. For example, some years ago, there were some sports teams that supposedly lost games on purpose in order to finish last and thereby draft position No. 1 for the pool of players coming out of college. Then there is the individual who cuts to the front of the line at a bus stop. There also is a major company that I always felt made their own set of rules, and seem to continue to get away with it. This latest example is no different.
In a barely discernable light slap on the wrist, the SEC settled an administrative enforcement action against Microsoft for repeatedly misstating its income by material amounts in filings made between July 1, 1994, and June 30, 1998. Specifically, during the relevant period, the SEC found Microsoft maintained approximately $200 million to $900 million in unsupported and undisclosed reserves, a significant portion of which did not comply with GAAP, which resulted in material inaccuracies in those filings made by Microsoft with the Commission. There was also a finding of failure to maintain internal controls.
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