Microsoft moneymen under microscope

NEWS Microsoft is the latest company to come under the scrutiny of Wall Street's watchdog over accounting practices, according to reports today. The Securities and Exchange Commission is understood to have met with the software giant on several occasions to discuss allegations that Microsoft accountants set aside revenue in reserve during boom quarters which was then released in bad quarters to improve the look of results. People close to the situation - referred to in this morning's WSJ - believe Microsoft will escape penalties and will instead will be charged with the lesser misdemeanour of falling to keep accurate books and records. A spokesman for the company is quoted as saying: "Microsoft has cooperated fully with the SEC but because this is not a public inquiry, it's not appropriate to comment further or speculate."