Autodesk 2014 Annual Report Download - page 99

2013 Annual Report
2014 Form 10-K 25
Pursuant to Section 404, we are required to furnish a report by our management on our internal control over financial
reporting. The report contains, among other matters, an assessment of the effectiveness of our internal control over financial
reporting as of the end of our fiscal year, including a statement as to whether or not our internal control over financial reporting
is effective. This assessment must include disclosure of any material weaknesses in our internal control over financial reporting
identified by management.
Although we have determined that our internal control over financial reporting was effective as of January 31, 2014, as
indicated in our Management Report on Internal Control over Financial Reporting, included in our Annual Report on Form 10-
K for the fiscal year ended January 31, 2014, 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.
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 may impact our
business or expose us to increased liability.
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