The SEC recently announced settled charges with Under Armour [NYSE: UAA] related to certain disclosure failures and making misleading statements to investors. The charges were notable, as the SEC enforcement action alleged that Under Armour engaged in manipulative revenue practices … Continue reading
Category Archives: Revenue Recognition
Recognizing Challenges of New Revenue Recognition Rule
Note: This article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Eikon, FactSet, and S&P Global. For recent updates, please contact us. Introduction For nearly two years, we have monitored U.S. public companies’ progress … Continue reading
Kingsway Financial Services, Inc. [KFS]: Extensive SEC Comment Letter Conversation Identifies Accounting Errors
Kingsway Financial Services, Inc. [KFS] was forced to restate financial statements to correct revenue recognition errors related to adoption of ASC 606 and its effect on warranty subscriptions and commissions The restatement was triggered by a 15-letter comment letter conversation … Continue reading
A Look at Top SEC Comment Letter Issues in 2018
The number of SEC comment letters has been declining for nine consecutive years. During the first nine months of 2018, 2,174 letters were filed1 (831 CORRESPs and 1,343 UPLOADs) – a decrease of 40% from the 3,629 letters that were … 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
Impact of New Revenue Recognition Rule on the Russell 3000
As Russell 3000 public companies with December year-ends implement the new revenue recognition standard, we are beginning to see a pattern – smaller companies provide fewer details and generally are not as prepared as larger companies. Smaller companies may lack … Continue reading
What You Should Know About General Electric’s Revenue Recognition Announcement
Note: This post has been updated to include the full, unabridged FactSet article made available on November 12, 2018. General Electric Co [GE] released an update on April 13, which among other things, clarified issues related to the adoption of … Continue reading