Capitalization of Costs at Salesforce.comdiscusses the history, growth, and accounting methods used by Salesforce in relation to the impact that it could have for investors.
Because of the recent concerns around the organization’s capitalization of costs, and nonstandard accounting methods; Dean is wondering whether he should consider Saleforce as an investment opportunity.
Dean acknowledges that the Salesforce sales and products have experienced positive growth. He is also aware of the growing criticism of the company’s accounting practices.
From Dean’s perspective on whether to choose to invest in Salesforce, the following will need to be examined; Salesforce’s competitive and sustainable growth factors, the logic of Saleforce’s policy decisions around development
costs, the company’s metric choices, and finally the letter from
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