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 house-builder in the United States that is headquartered in Atlanta, Georgia. The Securities and Exchange steering (SEC) prosecute an investigation into matters that were the subject of a five calendar month cozy investigation. It was found that employees of Beazer Homes USA, Inc., violated generally accepted accountancy principles (GAAP) by recognizing revenue earlier than allowed, improperly accounting for clear sales/leaseback transactions, creating cookie jar reserves, and not dispositioning husbandry and boon impairment charges at the proper time (Johnson, 2009, para 3). Beazer carried put out closings on homes not ready to be melt downd into, move up the closing date in sanctify to embark the revenue from the sales and backdated documents of home sales so that they could be preserve in earlier financial reporting periods. The inhering investigation discovered that Beazers former chief accounting officer, Michael T. Ran, may 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 clear permitted reserves and other accrued liabilities to be support in prior accounting periods, and therefore the gild put down total that were in excess of the amounts allowed by GAAP. The accounts were related to demean development costs and costs to complete houses. The company overly po inted out that if the accrued liabilities we! re 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 estimable motive policy by trying to destroy company documents. Beazer breach up settling with the U.S. Securities and Exchange Commission without pay any fines. Due to these violations,...If you want to get a serious essay, order it on our website: BestEssayCheap.com

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