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Disney whistleblower told SEC the company inflated revenue for years
A former Walt Disney Co. accountant says she has filed a series of whistleblower tips with the Securities and Exchange Commission alleging the company has materially overstated revenue for years.
Sandra Kuba, formerly a senior financial analyst in Disney's revenue-operations department who worked for the company for 18 years, alleges that employees working in the parks-and-resorts business segment systematically overstated revenue by billions of dollars by exploiting weaknesses in the company's accounting software.
[...] A Disney spokesperson said the company had reviewed the whistleblower's claims and found that they were "utterly without merit."
Kuba's whistleblower filings, which have been reviewed by MarketWatch, outline several ways employees allegedly boosted revenue, including recording fictitious revenue for complimentary golf rounds or for free guest promotions. Another alleged action Kuba described in her SEC filing involved recording revenue for $500 gift cards at their face value even when guests paid a discounted rate of $395.
[...] Kuba's filing alleges that flaws in the accounting software made the manipulation difficult to trace, though the consequences could be significant. In just one financial year, 2008-09, Disney's annual revenue could have been overstated by as much as $6 billion, Kuba's whistleblower filing alleges. The parks-and-resorts business segment reported total revenue of $10.6 billion in 2009, according to its annual report filed with the SEC.
Also at Deadline and Bloomberg.
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(Score: 2) by JoeMerchant on Friday August 23 2019, @05:18PM
When you get into the bottom 80% wealth group, you start encountering a lot of negative disposable incomes. Blame consumerism or whatever you like, so many people in this group are in debt for their house, cars, and last week's trip to the movies - they might do the 401(k) thing at work if there's a decent company match, or they might not, because: no spare money.
Prior to 2008 I didn't have an IRA, after the crash I opened a Roth, sold my crashed stocks, and bought back 2 years' IRA limit worth of those stocks in the Roth. Sell at a loss - get the tax break, then buy in the Roth and take the bounce tax free. My cube-mate just sold his stocks - which I think a lot of people did do... of course, he also held on to his house in the Detroit suburbs... some people just never catch a break.
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