Report on Whistle Blowing Claim of Accounting Shenanigans

Running head-REPORT ON WHISTLE BLOWING CLAIM OF ACCOUNTING SHENANIGANS
REPORT ON WHISTLE BLOWING CLAIM OF ACCOUNTING SHENANIGANS
Name of the Student-
Name of the University-
Author’s Note-

1REPORT ON WHISTLE BLOWING CLAIM OF ACCOUNTING SHENANIGANS
Table of Contents
Discussion.......................................................................................................................................2
Response to Discussion question 1............................................................................................2
Response to discussion question 2:...........................................................................................4
Recommendation: Response to discussion question 3................................................................4
References.......................................................................................................................................6

2REPORT ON WHISTLE BLOWING CLAIM OF ACCOUNTING SHENANIGANS
Discussion
Response to Discussion question 1.
Success Factors, a U.S. Multinational company was not capable of earning enough profit.
It went on incurring losses, since it got incepted in 2001, in almost every fiscal year (Bersin
2018). The estimated amount of loss being near about $12.5 million in 2010. Success Factors
also has an amount of $231.3 million.as accumulated deficit (Bersin 2018).
However, $3.4 billion amount was paid by SAP which is nearly more than 10 times, of
the revenue that Success Factors generated in 2011, that is estimated to be $327 million
(Mckenna 2018). This amount was paid by SAP to purchase Success Factors in the earlier part
of the year 2012 (Bersin 2018). SAP at that time had an intention of gaining a good market share
along with proficiency in human resources software in the form of a service arena, as this field
war rapidly growing. During that time, Success Factors already possessed a rich customer base
which included subscriptions of 15 million seat licenses that were widely spread 3,500
customers.
Like other companies, Success Factors also amplified the financial results of the
company which is in accordance with the generally accepted accounting principles known as
GAAP, the base for preparing financial report, along with certain financial measures that are
non-GAAP (Brown, Cohen and Huffman 2018). Obviously, the calculations of such non- GAAP
financial measures are different in every company. Such a non-GAAP financial measure was
known as backlog which were generally reported (Black et al. 2018). Service firms based on
cloud computing, like Success Factors, always sent invoice to the subscribers on yearly basis,
even if the subscription duration is of more than one year time span. Recording of the