Overstock.com Unit 5 IP ACCT205

Overstock.com Unit 5 IP ACCT205 - Overstock.com ACCT205-...

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Overstock.com ACCT205- Unit 5 IP Cheri Bolin July 8, 2011 Abstract Overstock broke their trust with many consumers, employees and stockholders back in 2008. After researching the accusations against them, I have found that The Big O’ has mislead many and violated their own ethics. Companies face many financial responsibilities and human error often promotes dishonesty especially when an individual is doubtful or is faced with hardships.
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Overstock.com In a news press release in 2009, Overstock.com received some negative publicity because they made some decisions regarding GAAP, internal accounting policies and their relationship with external auditors that has now caused the company to have to restate their published financial statements going back to 2008.“Overstock.com improperly deferred income that it earned but under-billed its fulfillment partners during prior reporting periods by moving such income to future reporting periods. Overstock.com took income that should have been reported in prior reporting periods and moved it to future reporting periods to materially overstate its financial performance in those later reporting periods.” (Anatar, 2010) and “The Big O also admitted that it “incorrectly amortized the expense related to restricted stock units based on the
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actual three year vesting schedule rather than a three year straight line amortization and applied an outdated forfeiture rate in calculating its expense under the plans.” When an accounting error reaches this degree, it generally involves a number of top-level
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This note was uploaded on 12/10/2011 for the course ACCT 205 taught by Professor Shanakoh during the Spring '10 term at AIU Online.

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Overstock.com Unit 5 IP ACCT205 - Overstock.com ACCT205-...

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