lecture7 - ACCT 3220/Sep 8, 2010 SECs focus on revenue...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 3220/Sep 8, 2010 1 SEC’s focus on revenue recognition SEC quotes regarding revenue recognition: (Improper revenue recognition) is the "recipe of choice for cooking the books." SEC Enforcement Division's Chief Accountant Walter Schuetze (C)ompanies try to boost earnings by manipulating the recognition of revenue. Think about a bottle of fine wine. You wouldn't pop the cork on that bottle before it was ready. But some companies are doing this with their revenue -- recognizing it before a sale is complete, before the product is delivered to a customer, or at a time when the customer still has options to terminate, void or delay the sale. SEC Chairman Arthur Levitt, September 28, 1998
Background image of page 1

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

View Full DocumentRight Arrow Icon
ACCT 3220/Sep 8, 2010 2 This SAB (101) fulfills a commitment that Chairman Levitt made in his September 1998 speech that the staff would issue three staff accounting bulletins to address earnings management problems. The staff previously issued two staff accounting bulletins: one in August addressing materiality in the preparation of financial
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/12/2010 for the course ACCT 3220 at Colorado.

Page1 / 4

lecture7 - ACCT 3220/Sep 8, 2010 SECs focus on revenue...

This preview shows document pages 1 - 3. Sign up to view the full document.

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