Japanese electronics giant NEC has settled with the U.S. Securities and Exchange Commission over charges that it improperly booked revenue from its customer contracts and did not maintain accurate books and records, causing the company to miss filing financial statements two years in a row.
The SEC said that for fiscal years 2000 through 2005, NEC filed annual reports that misstated revenues, net income or net loss. NEC improperly recognized revenues from contracts with customers that included the provision of hardware, software, and customer support, according to the SEC. The company should have deferred a substantial portion of these revenues pending future performance in accordance with U.S. generally accepted accounting principles.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access