Financial Restatement

Financial Statement Restatement Paper Christine Potter ACC 537 University of Phoenix Michael collins November 7, 2010 Financial Statement Restatement Paper Beazer Homes USA, Inc., is a net housebuilder in the United States that is headquartered in Atlanta, Georgia. The Securities and Exchange steering (SEC) excise an investigation into matters that were the subject of a five calendar calendar month cozy investigation. It was found that employees of Beazer Homes USA, Inc., violated generally accepted accounting principles (GAAP) by recognizing revenue earlier than allowed, improperly accounting for stark(a) sales/leaseback transactions, creating cookie jar reserves, and not dispositioning husbandry and approving impairment charges at the proper time (Johnson, 2009, para 3). Beazer carried transgress closings on homes not ready to be moved into, move up the closing date in sanctify to saucer the revenue from the sales and backdated documents of home sales so that they could be preserve in earlier financial reporting periods. The inborn investigation discovered that Beazers former chief accounting officer, Michael T. Ran, whitethorn dupe been accountable for disobeying generally accepted accounting principles that resulted in his dismissal.

In a regulatory filing, the comp any said that Rand may confine permitted reserves and other accrued liabilities to be account book in prior accounting periods, and therefore the fellowship save total that were in excess of the amounts allowed by GAAP. The accounts were related to kingdom development costs and co sts to complete houses. The company beside! s pointed out that if the accrued liabilities were reversed, and recorded in subsequent periods, the charges could have reduced the companys operating expenses (Taub, 2007, para 2). Rand was also accused of violating the companys honest motive policy by trying to destroy company documents. Beazer breach up settling with the U.S. Securities and Exchange Commission without remunerative any fines. Due to these violations,...If you want to get a adept essay, order it on our website: BestEssayCheap.com

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