From the first draft to the final version, an S-1 prospectus of a company goes through many revisions. Financial and operational numbers, wording, composition, length – all can change significantly. What might drive these changes? In some cases, the release of new information requires … Continue reading
Author Archives: Olga Usvyatsky
When Will Hertz Finally File?
On November 10th Hertz (HTZ) filed yet another regulatory form, indicating for the third straight quarter that the company would be forced to delay the release of its financial statements. This is their third non-timely filing in a row since May … Continue reading
Non-GAAP Measures and One-Time Adjustments
This October, PwC released a study on the use of non-GAAP metrics (NGMs) in IPO prospectus filings. According to the study, almost 60% of over 400 companies used at least one NGM. Out of those, at least 65% used EBITDA and/or Adjusted … Continue reading
GT Advanced Technologies: Non-GAAP Signals
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The number of (conspiracy) theories surrounding the recent bankruptcy of GT Advanced Technologies (GTAT) may soon exceed the number of words found in their last annual report. People eagerly speculate: was it mismanagement? an attack from Apple? a combination of the … Continue reading
Restatements during the Registration Period
On August 15, 2014 Alibaba Holding (BABA) disclosed accounting irregularities in one of its units – recently acquired Alibaba Pictures (formerly known as China Vision Media Group). The announcement did little to affect the company’s valuation. About a month later, on … Continue reading
Accounting Estimates: Groupon’s Revenue Adjustment
On August 19th, the PCAOB issued a Staff Consultation Paper on Auditing Accounting Estimates and Fair Value Measurements. As discussed in the paper, Accounting Estimates is one of the most challenging topics for auditors and companies alike. Other regulatory bodies, … Continue reading
Potential Restatement Costs To Hertz
Back in June, we alerted our readers that the problems faced by Hertz (HTZ) were likely far from over and that the stock still had a significant accounting and regulatory risk. We based our assessment on numerous indicators, including a CFO … Continue reading