Div_Res = 1 if the contract allows accounting changes
to affect contract calculations and contains an accounting-based dividend restriction but not an accounting-based performance-pricing provision, 0 otherwise; and
Genentech's pro forma financial results exclude certain charges related to the 1999 redemption of Genentech's stock and the cumulative effect of accounting changes
. Due to the adoption of new accounting rules and the increase in revenues, Genentech's actual earnings per share for the first quarter of 2002 increased 260 percent.
The supermarket operator anticipates earnings per share of $3.20 after the accounting changes
for the current fiscal year, which will end in November 2002.
The conglom, which is in the process of merging with America Online, said it will likely post a non-cash charge of $400 million-$425 million to reduce the carrying value of its film inventory if certain film industry accounting changes
are adopted in early 2001.
Bassett's first-quarter 2000 earnings were $0.36 per share after accounting changes
, only $.02 per share above comparable 1999 first-quarter earnings and $0.4 below analysts' consensus estimate, according to First Call/Thomson Financial.
The frequency with which effects of accounting changes
were reported on corporate financial statements implies that the odds are very high that you will encounter such effects when you examine income statements of U,S.
Please Comment on Any Directives That May Have Been Given to Examiners on How to Handle Prospective Accounting Changes
(Form 3115) Brought to the Examiner's Attention During the Course of the Audit.
Net income was $183 million, up from a loss of $88.1 million in 1993 when accounting changes
were a contributing negative factor.
available only to insurers include changes in deferred policy acquisition (DPAC) expenses and accounting for policy reserves.
Excluding the effects of accounting changes
and onetime losses on early debt extinguishment, the operator of supermarkets, combos and drug stores reported a deficit of $21.2 million over the 52 weeks, compared with $617 million of red ink in fiscal 1992.
For example, Table 1 aggregates the data from all five firms in the sample and shows before-tax earnings "with" and "without" the proposed accounting changes
. Note that the earnings labeled "without" are the actual reported quarterly earnings from the firms' Form 10Q and quarterly reports.
The ways to blow smoke are many, ranging from an inordinate emphasis on operating results in the letter to shareholders or in other parts of the text, to listing operating income only in an annual report's financial highlights and explaining accounting changes
in footnote fashion.