Posts Tagged ‘HP’
I just did something embarrassing and you are gawking at me. “Look, over there!” say I to distract you, thus ending the focus on my embarrassment.
That is an extremely short version of Grumpy Old Accountant Dr. Catanach’s post “H-P Throws Its Accountants Under the Bus! But Why?”
I still can’t quite figure out what is in Autonomy’s accounting that was a severe problem and why that led to an $8.8 billion write-off. That seems to be a common thread in the discussion of HP and Autonomy that I’ve been reading lately.
I won’t go into much detail. Just want to give a few links to leave a trail of the direction things seem to be going.
The view of HP’s claimed fraud against its acquired sub is getting murkier. Looks like we need to let the dust settle before we decide who gets the vigilante mob’s lynching.
News filtering out now is about a lot of revenue that can be recognized under IFRS but not under U.S. GAAP. Apparently, some things we would consider to be “channel stuffing” are allowed under IFRS.
I previously used the analogy of a train wreck in progress. Looks like the freight cars are still flying through the air.
Jonathan Weil, in his post at Bloomberg, HP’s Explanation Still Makes No Sense, says the numbers provided by HP aren’t adding up.
The allegation by HP is that
About $200 million of Autonomy’s revenue had been recorded prematurely or improperly over a two-year period beginning in 2009,
If you enjoy watching train wrecks while the freight cars are still airborne and the engine is still sliding down the track sideways, you really have to quickly check out HP’s investment in Autonomy. You can watch it unfold in daily slow mo.
Fast background, amounts, Big 4 players, and some links