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
Category Archives: SEC Comment Letters
2014 Comment Letters: Industry Breakdown
As mentioned in our previous blog, 2014 SEC Comment Letters: Trends and Issues, the number of SEC comment letters (including both UPLOADs and CORRESPs) regarding 10-Ks and 10-Qs issued during the first six months of 2014 decreased about 25% compared … Continue reading
2014 SEC Comment Letters: Trends and Issues
The number of SEC comment letters regarding 10-Ks and 10-Qs issued during the first six months of 2014 decreased about 25% compared to the same period in 2013. The SEC is required to review each registrant’s financial statements at least once … Continue reading
SEC Questions Internal Controls at Citigroup
On August 1, 2014 Citigroup Inc [C] received a comment letter from the SEC. One of the comments referred to a $235 million after-tax charge resulting from a fraud discovered at its Banco Nacional de Mexico (Banamex) subsidiary, which was recorded during the … Continue reading
US Company Tax Issues On The Rise
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Burger King grabbed headlines a while back when it announced it will be joining with the iconic Canadian chain Tim Hortons and moving its headquarters to the north. Burger King has long been a staple in the American tradition of … 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