On May 13, 2014 Hertz (HTZ) notified the SEC that it wouldn’t be able to file its quarterly report (known as Form 10-Q) on time. In the filing (Form 12b-25, or NT 10-Q) Hertz disclosed that “additional work” was needed in order … Continue reading
Category Archives: Changes in Accounting Estimates
Change in Estimate – Accounting Red Flag?
Late last week, Diamond Foods (DMND) agreed to pay $5 million to settle charges brought by the SEC. The SEC alleged that “Diamond’s then-chief financial officer Steven Neil directed the effort to fraudulently underreport money paid to walnut growers by delaying … Continue reading
Changes in Accounting Estimates – First Look
While some figures in financial statements are relatively straightforward, others are more complex. Some of the more complex figures require judgments about future events. For example, a certain number of accounts receivable will not be collected, but neither the actual … Continue reading