{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

econ4 abstract article

econ4 abstract article - Although some may see this...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Jason Tang #203 Joey Goldenberg #72 06/02/08 Econ 4 Prof. Willoughby Krispy Kreme Report Calls for Earnings Restatement Krispy Kreme Doughnuts must restate its earnings downward by $22.2 million for 2001-2004 and the first nine months of fiscal 2005 and by 3.4 million for previous years due to improper recognition of revenue and improper reduction of expenses. The committee which recommended this report note that the accounting errors strongly suggest that the former CEO Scott Livengood and COO John Tate tried to manage earnings by structured timing of transactions. By improperly recognizing revenue and reducing expenses, Krispy Kreme Doughnuts made its stock more appealing to the general public and at the beginning of 2000 when the company went public the stock was a favorite of Wall Street.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Although, some may see this restatement as relatively small, in the corporate culture driven to beat or exceed projected earnings by pennies per share this restatement is critical; the restatement has changed the income statement thus devalued the financial performance of the company dating back to 2001. For those investors that have shares of Krispy Kreme Doughnuts (NYSE: KKD), this loss of revenue could have been a decisive factor to make an investment in the company or not. To make this clear, there has been a shareholder demand that Krispy Kreme sue any current or former directors or executives for these accounting errors. Krispy Kreme Doughnuts has failed to meet its accounting and financial reporting obligations to its shareholders and the public....
View Full Document

{[ snackBarMessage ]}

Page1 / 2

econ4 abstract article - Although some may see this...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online