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
In our most recent report, Financial Restatements: A 20-Year Review, we found that 68% of restatements resulted in a negative income impact during 2022. If most restatements are a result of complex accounting rules that are misapplied or misunderstood, why is … Continue reading
Trying to identify red flags or trends in a company’s financial statements and public disclosures is a monumental task. The lengthy, and often opaque, nature of financial reporting makes the process of trying to thoroughly screen a company’s disclosures, or … Continue reading
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
Retailer Ollie’s Bargain Outlet Holdings, Inc. [OLLI] recently drew the SEC’s attention when the company said it would eliminate all of its critical accounting estimates. The SEC requires companies to make critical accounting disclosures when a firm must make judgment … Continue reading
Audit Analytics is proud to announce Accounting Quality Insights, our newest research product geared towards investors and financial professionals. Accounting matters are crucial in understanding the complete financial picture of a company; our insights cover accounting, control, and related governance … Continue reading
With the new ASC 606 rule now in effect and earnings season in full swing, we are beginning to see how different companies changed the way they account for revenue. For some, it will improve fiscal 2018 financial results. If … Continue reading