Harvard case: Accounting for Customer Solicitation at Workday, Inc.

What is your assessment of the companys revenue recognition policy with respect to its subscription fees? Are these accounting methods in accordance with US GAAP or IFRS? Evaluate the impact on the companys financial statements in 2013 if the company had always recognized revenue as the upfront cash payments were received. [Hint: try reconstructing the transactions made in 2013 by Workday with respect to revenue.]

Evaluate the impact on the companys financial statements in 2013 if the company had always expensed sales commission costs immediately, instead of capitalizing and amortizing them over time. What is your assessment of the companys policy of capitalizing and amortizing sales commission expenditures? Are these accounting methods in accordance with GAAP?