Note: This article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Eikon, FactSet, and S&P Global. Key Points: SEC fined former CEO of GT Advanced Technologies (GTAT) over $140,000 in connection with making false … Continue reading
Category Archives: Red Flags
What Caused SEC Investigation for Healthcare Services Group, Inc.?
Note – This article has been updated to clarify the following: In the notification of late filing for their 2018 annual report, Healthcare Services Group disclosed the receipt of an SEC subpoena, after nearly 18 months of investigation. Previously, the … Continue reading
Reasons for an Amended 10-K: 2018
Form 10-K, an annual report filed by US-based public registrants, is the most comprehensive source of information regarding a company’s financials and its underlying business. These reports are thoroughly scrutinized by investors and other users, which explains why they need … Continue reading
How to Predict Which Acquisitions Will Fail and Generate Negative Stock Returns
Summary of Key Findings It can be difficult to predict which acquisitions are going to fail An academic article using Audit Analytics’ data identified statistically significant negative abnormal returns of 12% for a subset of acquisitions that were excluded from … Continue reading
PayPal: The Importance of Intangible Asset Impairments
In July 2017, PayPal Holdings, Inc. [PYPL] acquired Canadian payment-processing company TIO Networks for $238 million. The purchase price consisted of $66 million of technology and customer-related intangible assets, net assets of approximately $2 million and initial goodwill of approximately … Continue reading
Five Years of Restatements Following Internal Investigation for MiMedx Group, Inc.
On June 7, 2018, MiMedx Group, Inc. [MDXG], a biopharmaceutical company, announced that the Company is going to restate previously filed financial statements for years 2012 through 2016, and the first three quarters of 2017. A financial restatement of this … Continue reading
Reasons for an Amended 10-K: 2017
Annual reports, or 10-Ks, are known for their extensive information relating to all aspects of a company’s business. With that being said, these files leave plenty of room for missed or omitted information, misstatements, or other inadvertent errors. In such … Continue reading