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Sarbanes-Oxley News & Developments
SEC: Barbecue Firm Caught Cooking The BooksDaidomon Group Plc was accused by the SEC of overstating income.
> > Daidomon Group has been ordered by the SEC to submit corrected financial statements. The securities watchdog found that Daidomon realised in one quarter all of the Bt30 million in income expected to be earned over a five-year deal with a beverage firm. The amount reported represented 96% of the companys net profit recorded in the 4th quarter of last year.
If Daidomon fails to submit corrected financial statements for last year and the 1st quarter of this year to the SEC by June 20, they will be fined for each day that it is late. Since the filings did not include a note on revenue recognition to the statements, the SEC has summoned its auditor.
Trading in Daidomon stock has been suspended and will be allowed to resume on Monday (6/9/03) but with a notice pending (NP) sign that will remain until the company sends in the required corrected financial statements.
Source: Hoovers article
Published:2003-06-07
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