AOL ASSIGNMENT There were two accounting policies used by AOL that were considered aggressive‚ as well as controversial. The first was to amortize its software development costs and the second was to capitalize subscriber acquisition costs. The lifetime‚ for amortization purposes‚ which AOL assigned to software development costs was five years. This was considered by many to be an exceptionally long time considering the pace at which technology was progressing during that period of time.
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historians say that the appeasement wasn’t justified and that Chamberlain was a weak person while of the other hand some say that Chamberlain didn’t have any other chose. There are a number of reasons that support both of the sides. Appeasement was justified in a few ways‚ sympathy for Germany‚ the desire for peace‚ the threat of communism and the time to rearm. All of these factors explain how the appeasement was justified. Sympathy for Germany‚ was an accept that mainly concerned the British
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Case Study: Cost Justified Managers face many challenges in the day to Day operations of their business. Often times some of the greatest challenges come from within their own ranks‚ as superior managers use their position and influence to coerce one to make decisions or commit acts that are sometimes on the boundaries of the law and often cross the ethical line. In the case of “Cost Justified‚” we are introduced to Joe‚ the District
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There are two opinions that modern historians have when it comes to Britain’s policy of appeasement with Germany back in the late 1930’s. Some historians would say that the appeasement with Hitler wasn’t justified at all and that Chamberlain was a weak-minded person‚ whom thought that Hitler would be reasonable (this was because Chamberlain was a very honest man and a trustworthy politician‚ who was naïve in thinking that other politicians would be the same). Other historians would argue that Chamberlain
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Was the U.S. Justified in Going to War With Mexico? (Yes) The United States of America in the 1800’s was a rapidly growing country. Many people moved west for religious freedom while others were strong believers in Manifest Destiny. In order to occupy land‚ settlers had to find land that wasn’t already occupied. Since most of the west was a part of Mexico‚ this was not easy to do. Luckily‚ Mexicans also wanted settlers in their western lands because that area was not developed. Mexico invited
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U.S Monetary Policy in 1995 When Alan Greenspan presented the Federal Reserve’s semi-annual report on monetary policy to the Subcommittee on Domestic and International Monetary Policy‚ the Committee on Banking and Financial Services‚ and the U.S. House of Representatives on February‚ Dr. Greenspan touted a cautionary yet favorable view of the U.S. economy. He states that "With inflationary pressures apparently receding‚ the previous degree of restraint in monetary policy was no longer deemed
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CASE STUDY NOTES/ ANALYSIS THE TRUE COST OF ACQUISITION. INTRODUCTION -The department of defense has highlighted its vision and mission but has not broken these down into objectives for each function - Without a breakdown of this mission into workable action plans/ objectives it is therefore very hard to create performance measure and standards of practice - This is evident by the recent happening of Darlene Druyun’s actions while acting in the position of head of procurement - There
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Chapter 2 America Online‚ Inc. Teaching Note Introduction The America Online (AOL) case is a comprehensive financial-statement analysis case. It enables students to do strategic analysis‚ accounting analysis‚ financial analysis a: and prospective analysis in a rich context. It can he used either as the first case in a course. on financial; statement analysis to set up the course framework or towards the end of the course as a comprehensive case. If it is used at the beginning‚ the instructor should
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Online 1. What accounting approach has AOL used in the past that it is now changing (related to the $385 million)? AOL‚ prior to October 1‚ 1996‚ recorded the expenditure related to subscribers acquisitions as an asset and amortized monthly over a period < 24 months. This was a strongly criticized approach. Furthermore‚ the accounting approach in the article is considered aggressive. In October 1996‚ they discontinued capitalizing customer acquisition and took a one-time charge of $385 million
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Using the Accounting Framework: AOL (Chapter 5‚ Antle) • AOL’s business environment America Online was the leader in providing internet connections in 1997 with 8.6 million subscribers. AOL had two sources of revenue (i) online service revenue generated from customer subscription to online service‚ and (ii) other revenues from e-commerce and advertising. Rapid changes occurred in the manner in which subscription revenue was generated which shifted AOL strategy to focusing on increasing
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