Microsoft Corporation

The following are the figures of unearned revenue under the head `Current Liabilities ' as per the Balance Sheet of Microsoft Corporation as on June 30 , 2007 , which is in accordance of the Annual Report 2007

(In millions Year 2007 Year 2006

1 Short-term unearned revenue 10 ,779 9 ,138

2 Long-term unearned revenue 1 ,867 1 ,764

Under the residual method , the recorded as `unearned ' under vendor-specific-objective

Revenue is recognized only when the actual delivery of goods is made and when the fixed fee is collected . In case of delivery sale

of multiple products , the element which is called as vendor-specific-objective evidence , which is in turn , happens to be a source of `unearned revenue ' for Microsoft Corporation . Another source of unearned revenue for Microsoft is based on `when-if-available-basis . In the sale of retail packaged products under OEM , revenue is recognized only when products are shipped , which include Windows XP and other previous PC operating systems , upgradation of version of Microsoft Internet Explorer and other Internet supporting software

The last and final source of unearned revenue for Microsoft is multi-year licensing arrangements which include delivery of Microsoft software , hardware , online advertising and consulting services . These sources of `unearned revenue ' accrue revenue as and when a percentage of completion of service or delivery of packaged products is made , in accordance with the licensing arrangements

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