The company changed its revenue recognition policy last year, he notes, which increases headwinds to growth in 2011.
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The investigation revealed that the senior management at Siwei had engaged in wrongful revenue recognition practices for several years to overstate profits.
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As a result, many significant investigations relating to revenue recognition or other complex accounting matters ultimately died on the vine or resulted in express declinations.
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Too-early revenue recognition is one of the most common accounting problems, and often results when managers push employees to help them hit too-aggressive growth targets.
Timing of revenue recognition can be very subjective, and honest accountants can differ about when money flowing in to the company should be booked as sales.
It's one of the oldest accounting scams around: Desperate executives book corporate revenue in a reporting period knowing that it doesn't meet the rules for revenue recognition.
The use of licensing transactions with value-added resellers to inappropriately accelerate revenue recognition, or worse, create revenue where no end-user customer existed at the time of sale.
My November 5 Forbes magazine article also mentions a whistleblower that has made eerily similar revenue recognition fraud allegations to the SEC regarding an SAP acquisition, SuccessFactors.
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While this did not affect ACCL's cash flows this year, it significantly reduced revenue recognition over the past 12 months--confusing investors trying to gauge the health of the company's business.
It counts all revenue from virtual goods sales at the time the player purchases them, providing investors a read on the pulse of business momentum regardless of the timing of revenue recognition.
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Revenue recognition fraud has been called one of the major accounting issues in the U.S. The SEC has filed recent civil actions alleging it against ex-officials of publicly traded Qwest Communications and Homestore.
Veeco Instruments shares are trading sharply lower this morning after the company disclosed that due to the discovery of a revenue recognition issue, it will be delayed in filing its September quarter 10-Q.
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They started with the announcement last July that the company would be delaying its second quarterly report, and that annual reports for 2010 and 2011 would have to be restated because of problems with revenue recognition.
At the same time the stock seemed like a good buy partly because its shares seemed to be oversold, driven down by the prospect of increasing competition, a slight loss in market share and a Securities and Exchange Commission inquiry into revenue recognition errors.
When combined with the impact of the seasonality of our business and the calendar timing of our first fiscal quarter, this trend had a more significant effect than previously anticipated, and resulted in revenue recognition delays on a few solutions-oriented projects with new customers, especially in international markets.
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Windows would have been flat without revenue-recognition deferrals from the previous quarter.
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It may be revenue or recognition, but there is some sort of expectation that there is a return on the investment of their time and sharing.
They do not play games with revenue and expense recognition, or with asset valuation.
Such multiple use of brands has two virtues: it brings in new revenue streams, and it strengthens brand recognition.
Waechter says the gesture recognition business was less than 4% of revenue in the December quarter, but the market is just getting off the ground.
Google is poised to tap into that growing revenue source with or without Blinkx's image and audio recognition technology, says company spokesperson Brandon McCormick.
Recent reports and discussions make it clear one or more IRS employees responded to a public information request from the news organization ProPublica by giving ProPublica pending applications and subsequent extensive correspondence with the IRS regarding the applications from a number of organizations seeking recognition of their exemption from tax under Section 501(c)(4) of the Internal Revenue Code.
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