Autodesk 2011 Annual Report Download - page 88

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While we have determined that our internal control over financial reporting was effective as of January 31,
2010, as indicated in our Management Report on Internal Control over Financial Reporting, included in this
Annual Report on Form 10-K, we must continue to monitor and assess our internal control over financial
reporting. If our management identifies one or more material weaknesses in our internal control over financial
reporting and such weakness remains uncorrected at fiscal year end, we will be unable to assert such internal
control is effective at fiscal year end. If we are unable to assert that our internal control over financial reporting is
effective at fiscal year-end (or if our independent registered public accounting firm is unable to express an
opinion on the effectiveness of our internal controls or concludes that we have a material weakness in our
internal controls), we could lose investor confidence in the accuracy and completeness of our financial reports,
which would likely have an adverse effect on our business and stock price.
In preparing our financial statements we make certain assumptions, judgments and estimates that affect
amounts reported in our consolidated financial statements, which, if not accurate, may significantly impact
our financial results.
We make assumptions, judgments and estimates for a number of items, including the fair value of financial
instruments, goodwill, long-lived assets and other intangible assets, the realizability of deferred tax assets and the
fair value of stock awards. We also make assumptions, judgments and estimates in determining the accruals for
employee related liabilities including commissions, bonuses, and sabbaticals; and in determining the accruals for
uncertain tax positions, partner incentive programs, product returns reserves, allowances for doubtful accounts,
asset retirement obligations and legal contingencies. These assumptions, judgments and estimates are drawn from
historical experience and various other factors that we believe are reasonable under the circumstances as of the
date of the consolidated financial statements. Actual results could differ materially from our estimates, and such
differences could significantly impact our financial results.
Changes in existing financial accounting standards or practices, or taxation rules or practices may adversely
affect our results of operations.
Changes in existing accounting or taxation rules or practices, new accounting pronouncements or taxation
rules, or varying interpretations of current accounting pronouncements or taxation practice could have a
significant adverse effect on our results of operations or the manner in which we conduct our business. Further,
such changes could potentially affect our reporting of transactions completed before such changes are effective.
For example, the U.S.-based Financial Accounting Standards Board (“FASB”) is currently working together
with the International Accounting Standards Board (“IASB”) on several projects to further align accounting
principles and facilitate more comparable financial reporting between companies who are required to follow U.S.
Generally Accepted Accounting Principles (“GAAP”) under SEC regulations and those who are required to
follow IFRS outside of the U.S. These efforts by the FASB and IASB may result in different accounting
principles under GAAP that may result in materially different financial results for us in areas including, but not
limited to principles for recognizing revenue and lease accounting.
In addition, the SEC has stated that it intends to make a determination in 2011 regarding the incorporation
of IFRS into the financial reporting system for U.S. companies. A change in accounting principles from GAAP to
IFRS may have a material impact on the way in which we report financial results.
It is not clear if or when these potential changes in accounting principles may become effective, whether we
have the proper systems and controls in place to accommodate such changes and the impact that any such
changes may have on our consolidated financial position, results of operations and cash flows. In addition, as we
evolve and change our business and sales models, we are currently unable to take into account how these
potential changes may impact our new models, particularly in the area of revenue recognition.
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