tailieunhanh - The financial numbers game detecting creative accounting practices phần 2

28 năm 1999 là cũng tiến hành đặc biệt tốt, với lợi nhuận hoạt động trước thuế báo cáo $ cho các chín tháng đầu tiên của năm đó. Tuy nhiên, vào đầu năm 2000, công ty thông báo rằng nó đã được tái khẳng định kết quả của nó trong hai quý cuối cùng của năm 1998 và 3 / 4 năm 1999, lau $ thu nhập trước thuế trong hai năm. | The Financial Numbers Game The company s earnings seemed to indicate that its strategy was working. The company reported pretax operating profit of 17 186 000 23 395 000 and 44 762 000 in 1996 1997 and 1998 The year 1999 was also proceeding particularly well with pretax operating profit reported at 92 865 000 for the first nine months of that year. In early 2000 however the company announced that it was restating its results for the last two quarters of 1998 and three quarters of 1999 wiping out 81 562 000 of pretax earnings for the two years. Operating profit for the year ended 1998 was restated to 6 492 000 from 44 762 000 and to 49 573 000 from 92 865 000 for the first nine months of 1999. The primary culprit was the company s method of accounting for promotional expenses paid to retailers. The company s revenue recognition practices and amounts recorded for cost of goods sold and brokerage and distribution expense were also part of the restatement but to a much lesser extent. Food companies compensate retailers for shelf space and supermarket displays. Aurora was apparently recognizing promotion expense not at the time it shipped product to the food retailers but rather when the retailers later sold that product. As such Aurora was postponing expense recognition. In its 1999 annual report the company described the impact of its improper practices Upon further investigation it was determined that liabilities that existed for certain trade promotion and marketing activities and other expenses primarily sales returns and allowances distribution and consumer marketing were not properly recognized as liabilities and that certain assets were overstated primarily accounts receivable inventories and fixed assets . In addition certain activities were improperly recognized as Even after the elimination of significant amounts of the company s operating profit for 1998 and 1999 the company announced that Sales of the company s premium branded food