There is heated political debate over reserves for bad debts
and whether the Bank of Korea (BOK) should enact a "Korean version" of quantitative easing and inject capital to the banks.
Aging and Analysis: Delta must maintain adequate information concerning the age of outstanding bills and claims for proper overall control of accounts receivable and related reserves for bad debts
While a few cases of earnings distortions arise from manipulation of transactions, most arise from manipulating "soft-number" accruals, such as restructuring charges and reserves for bad debts
and inventory obsolescence.
The effect of unification will cause banks to increase their reserves for bad debts
LADD also will increase its reserves for bad debts
and slowmoving inventories.
During this time, HMA changed its bad debt accounting methodology such that it now reserves for bad debts
at 12% of revenues versus historical averages near 7.
As more fully described in the Form 10-Q filed with the Securities and Exchange Commission, the Company took charges of ($3,968,000) to revalue certain inventory it purchased under a long term agreement with an OEM, and ($422,000) to increase the reserves for bad debts
, among other charges, and reversed tax reserves of $810,000 during the quarter.
01 when compared to the same prior year period due to a decrease in interest income and additional reserves for bad debts
More specifically, the Complaint alleges that defendants failed to disclose and indicate the following: (1) that the Company was materially inflating its financial results; (2) that the Company was prematurely recognizing revenue on various contracts; (3) that the Company's practice of improperly recognizing revenue was in violation of Generally Accepted Accounting Principles; (4) that the Company overstated its inventory; (5) that the Company failed to have adequate reserves for bad debts
, inventory, cost overruns, and projected losses on certain projects; and (6) as a result, the Company's financial results were materially inflated at all relevant times.
Specifically the Complaint alleges that Defendants failed to disclose that the Company was materially inflating its financial results and in violation of Generally Accepted Accounting Principles ("GAAP"), that MasTec was prematurely recognizing revenue on certain contracts, that the Company failed to maintain adequate reserves for bad debts
, inventory and failed to adequately project losses on certain projects.
0 million for restructuring to account for the planned closure of the Riverside, Uxbridge, facility in 2003, and an increase in reserves for bad debts
Also, the Company increased reserves for bad debts
and workers' compensation expense.