This is typical of corporations since making a splash brings new customers but also development on new products can be capitalized, in the accounting sense, which allows deferral of expenses over several years whereas maintenance and minor updates are all expensed. The former pumps up paper income and smoothes it out.
This is typical of corporations since making a splash brings new customers but also development on new products can be capitalized, in the accounting sense, which allows deferral of expenses over several years whereas maintenance and minor updates are all expensed. The former pumps up paper income and smoothes it out.