After Intel Inc. 's decision to replace deficiencies chips Pentium, the company is faced with the choice of revenue recognition. Events leading up to the decision of IBM, to stop shipping computers with Intel microprocessor and the decision by Intel, to replace all the chips are drawbacks. Intel must decide whether:. make a provision for the costs of replacing chips, delay the recognition of revenue on the shortcomings of chips that he now decided to replace or do anything on the basis of materiality "Hide
by VG Narayanan, James A. Evans Source : Harvard Business School 10 pages. Publication Date: September 18, 1995. Prod. #: 196091-PDF-ENG