HP Autonomy Case Explores Accounting for British Reseller Deal

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http://www.thevarguy.com – Hewlett-Packard‘s (NYSE: HPQ) investigation into Autonomy accounting includes a $6.4 million deal with Tikit Group PLC, a British supplier of of accounting software, according to The Wall Street Journal. Autonomy recognized the total 2010 deal as up-front revenue but Tikit paid Autonomy only as it incrementally sold the software to customers, the Journal reported. So what’s the upshot here? Basically, HP seems to be alleging that Autonomy had a habit of realizing revenue up-front even if a reseller or customer paid for the software over a series of months or years. Resellers such (IT news)