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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 Farkus888 on Friday August 23 2019, @10:13PM
I saved while in that low group, thousands a year every year. It isn't always fun but that doesn't make it impossible. I also didn't use the word cowardice for a reason. It is far too harsh. For that bottom group the 30% dip looks like the difference between a reasonable chance at retirement and a wasted effort saving in the first place. It is true that I can't speak with certainty about that many people all at once. The net worth graph by income starts diverging much faster after 2008 though. I also personally lost half of my less that average savings but now look like a rockstar on those net worth charts even before you account for my age. I personally talked to people who chickened out though and they'll never be able to catch up even though we have the same income.