Which in turn makes it difficult to understand performance

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And thus, this strategy made the Securities and Exchange Commission (SEC) concerned. Its concern stems from the fact that this strategy will make it difficult for ordinary investors and analysts to understand the true performance of the company. On one hand, the company records development costs as immediate operating expenses. On the other hand, it used to announce a portion of product sales profits and distribute the rest over the support period. Get the instant assignment help. Some analysts believe that the company does this to show more stable and consistent profits over time, which in turn makes it difficult to understand the company's performance well.

Reference no: EM133902107

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