Sab 99 Case Study
Homework - EARNINGS MANAGEMENT – due Monday, 4/8/13 (read & bring Sec. 6) (answers are in Section 6 material)
1. What does the term Managing Earnings refer to? • The use of accounting methods to produce financial information that present an overly positive image of the company’s financial performance
2. What is SAB 99 and 108 about? SAB 99 – is about materiality
SAB 108—is about quantifying financial statement misstatements
What is the FASB codification reference for SAB 99? 250-10-S99-1
3 What were some of the things Sunbeam did wrong? • Improper restructuring reserves and other “cookie-jar” reserves • Improper “bill and hold” sales • Deleted corporate records to conceal pending returns
1. What does the term Managing Earnings refer to? • The use of accounting methods to produce financial information that present an overly positive image of the company’s financial performance
2. What is SAB 99 and 108 about? SAB 99 – is about materiality
SAB 108—is about quantifying financial statement misstatements
What is the FASB codification reference for SAB 99? 250-10-S99-1
3 What were some of the things Sunbeam did wrong? • Improper restructuring reserves and other “cookie-jar” reserves • Improper “bill and hold” sales • Deleted corporate records to conceal pending returns