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posted by Fnord666 on Friday August 23 2019, @01:48PM   Printer-friendly
from the that's-a-lot-of-gas dept.

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.

Related: Disney Asks Employees to Contribute Towards DisneyPAC, TPP
Disney to Buy 21st Century Fox Assets for $52.4 Billion in Historic Hollywood Merger
Disney May Be Trying to Buy More of Hulu From AT&T's WarnerMedia


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  • (Score: 2) by eravnrekaree on Friday August 23 2019, @05:31PM (2 children)

    by eravnrekaree (555) on Friday August 23 2019, @05:31PM (#884252)

    While the stock market has a great run up, and many say that people who did not buy in missed out, the problem is the elites rode it up, but they will also know when its time to get out. But the poor schmuck with their 401(k) cant get out and will be wiped out. So just as important as getting in, is getting out in time. Most 401(k) and buy and hold strategies are designed for the poor schmuck, who gets wiped out and then has to wait years to recover.

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  • (Score: 0) by Anonymous Coward on Friday August 23 2019, @10:09PM

    by Anonymous Coward on Friday August 23 2019, @10:09PM (#884385)

    I have put in 100k. I now have '800k' I think I will do just fine.

  • (Score: 3, Informative) by Farkus888 on Friday August 23 2019, @10:24PM

    by Farkus888 (5159) on Friday August 23 2019, @10:24PM (#884393)

    7% annually accounting for crashes and inflation. Better than any bank account by a lot.