Software giant Microsoft says it will change the way it reports its results, although its underlying financial reporting regime will not change.

The Redwood-based firm said it would now break its results into five categories rather than the seven it had previously used.

It will do this by combining its entertainment and mobile device units, and will merge the unit that includes Office with its Microsoft Business Solutions unit.

However, the firm said it would keep its seven business units for the purposes of financial reporting.

Microsoft is also re-allocating the financial results of its Exchange business, moving them from the Server and Tools unit to the Microsoft Business division, which covers Office, Microsoft Business Solutions and other corporate software.

Its MSN unit will move to the Online Services Group, which will now include MSN and Windows Live.