Aggressive Revenue Recognition Techniques, Part 1 [Video]

Aggressive revenue recognition occurs when companies (a) prematurely recognize revenue or (b) recognize bogus sales.

Here are some ways companies have prematurely recognized revenue:
(1) channel stuffing
(2) changing the dat of the fiscal year-end
(3) holding the fiscal year open
(4) recording revenue before shipment
(5) shipping uncompleted products and assembling them elsewhere
(6) recording revenue for a full shipment when only a partial shipment was made
(7) announce a forthcoming price increase
(8) recognizing all the revenue upfront for a long-term contract
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