Six Key Tests Of An Acquisition Target’s Revenue-Recognition
- Topics:
- Revenue recognition
- Tags:
- Acquisition,
- Capital Eyes,
- Finance,
- Financial Services,
- Operational Accounting,
- Revenue,
- Revenue Recognition
- Source:
- Capital Eyes
FREE Registration is required
Overview: Intense focus on revenue recognition raises at least two concerns for deal makers. First, studies of detected accounting irregularities have found that more than half of the fraudulent financial reporting cases involve overstated revenue. Second, given the level of attention that the paying to this issue, almost any publicly held target's past revenue recognition practices could be the subject of a post-acquisition investigation. Some important diligence procedures regarding revenue recognition that an acquirer should consider are defining what matters, reading what management says, timing can be everything, reviewing customer and vendor lists, customer support and industry specific issues.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Dec 2002 | Pages: 1
