A change in a taxpayer's method for determining the portion of the taxpayer's applicable financial statement allowance for doubtful accounts
that is attributable to current-year NAE-eligible accounts receivable is an accounting method change to which Sec.
EBITDA for the full-year 2007, including special items and the incremental charge to increase the allowance for doubtful accounts
, was $455.
Change in applicable financial statements and allowance for doubtful accounts
: The revenue procedure states that a change to a taxpayer's method for determining its allowance for doubtful accounts
for its applicable financial statements is a change in method of accounting.
An analysis of historical trends can provide useful information about an entity's past accuracy and possible biases in estimating its allowance for doubtful accounts
The Company collected $140 million of the $154 million accounts receivable, net of allowance for doubtful accounts
at the end of 2011.
In the second quarter of 2009, allowance for doubtful accounts
1 million aftertax, or 50 cents per share), to increase the Company's allowance for doubtful accounts
More specifically, the complaint alleges that the Company: (1) was improperly accounting for business acquisitions; (2) was improperly calculating its allowance for doubtful accounts
receivable; (3) was overstating its income; (4) was preparing and filing financial reports in violation of Generally Accepted Accounting Principles ("GAAP"); and (5) failed to have adequate internal and financial controls.
Third quarter results include the write off of consumer notes receivable in excess of 90 days delinquent and the increase in the allowance for doubtful accounts
as a percentage of performing notes receivable and performing notes sold with recourse to reflect a reduction in expectations of collectability of delinquent and performing loans based on recent economic, financial and credit conditions.
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company's acquisitions were being improperly accounted for; (2) Swisher was improperly calculating its allowance for doubtful accounts
receivable; (3) the Company was overstating its income; (4) Swisher's financial reports were in violation of Generally Accepted Accounting Principles (GAAP); and (5) Swisher failed to maintain adequate internal and financial controls.
The company believes, based on currently available information, that the impact of these errors on Carmichael's previously disclosed receivables balance as of April 22, 2008 will be to decrease the stated receivables balance on the books of the Carmichael subsidiary as of the acquisition date by at least $1,300,000 resulting from, among other things, increasing the allowance for doubtful accounts
and recording certain customer credit adjustments and that such adjustments will also result in an adjustment to SunLink's allocation of the acquisition purchase price.
The increase in selling, general and administrative expenses is primarily attributable to costs relating to the United Nations project in Ethiopia where we incurred significant expense increases and an increase in allowance for doubtful accounts
of approximately $296,000 related to two projects in Asia and the Middle East.