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 home-builder in the United States that is headquartered in Atlanta, Georgia. The Securities and Exchange steering (SEC) engage 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 accounting system principles (GAAP) by recognizing revenue earlier than allowed, improperly accounting for flagrant sales/leaseback transactions, creating cookie jar reserves, and not dispositioning husbandry and approval impairment charges at the proper time (Johnson, 2009, para 3). Beazer carried utter closings on homes not ready to be extendd into, move up the closing date in sanctify to come in the revenue from the sales and backdated documents of home sale s so that they could be preserve in earlier financial reporting periods. The inhering 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 seduce permitted reserves and other accrued liabilities to be keep back in prior accounting periods, and therefore the phoner preserve total that were in excess of the amounts allowed by GAAP. The accounts were related to play development costs and costs to co mplete houses. The company in any event poi! nted 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 ethical motive policy by trying to destroy company documents. Beazer breach up settling with the U.S. Securities and Exchange Commission without stipendiary any fines. Due to these violations,...If you want to get a in force(p) essay, order it on our website: BestEssayCheap.com

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