Autodesk 2013 Annual Report Download - page 96

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 not yet made a determination regarding how or if IFRS will be incorporated 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 determine how these potential changes may impact our new models, particularly in the
area of revenue recognition.
Changes in laws and/or regulations related to the Internet or related to privacy and data security concerns or changes in the
Internet infrastructure itself may cause our business to suffer.
The future success of our business depends upon the continued use of the Internet as a primary medium for commerce,
communication and business applications. Federal, state or foreign government bodies or agencies have in the past adopted,
and may in the future adopt, laws or regulations affecting data privacy and the transmission of certain types of content using the
Internet. For example, the State of California has adopted legislation requiring operators of commercial websites and mobile
applications that collect personal information from California residents to conspicuously post and comply with privacy policies
that satisfy certain requirements. Several other U.S. states have adopted legislation requiring companies to protect the security
of personal information that they collect from consumers over the Internet, and more states may adopt similar legislation in the
future. Additionally, the Federal Trade Commission has used its authority under Section 5 of the Federal Trade Commission Act
to bring actions against companies for failing to maintain adequate security for personal information collected from consumers
over the Internet and for failing to comply with privacy-related representations made to Internet users. The U.S. Congress has at
various times proposed federal legislation intended to protect the privacy of Internet users and the security of personal
information collected from Internet users that would impose additional compliance burdens upon companies collecting
personal information from Internet users, and the U.S. Congress may adopt such legislation in the future. The European Union
also has adopted various directives regulating data privacy and security and the transmission of content using the Internet
involving residents of the European Union, including those directives known as the Data Protection Directive, the E-Privacy
Directive, and the Privacy and Electronic Communications Directive, and may adopt similar directives in the future. Several
other countries, including Canada and several Latin American and Asian countries, have constitutional protections for, or have
adopted legislation protecting, individuals' personal information. Additionally, some federal, state, or foreign governmental
bodies have established laws which seek to censor the transmission of certain types of content over the Internet or require that
individuals be provided with the ability to permanently delete all electronic personal information, such as the German
Multimedia Law of 1997.
24