How would you judge whether a firm is likely to face revenue recognition problems?© BrainMass Inc. brainmass.com October 10, 2019, 3:37 am ad1c9bdddf
The more complicated the revenue reporting becomes, the more likely that revenue is to not be recognizable. Think of the corporation which re-invests into other stocks in other companies rather than return revenue to those investors visible to the first level. Major stockholders are often involved in the re-investment of their returns into other municiples and ...
What red flags would indicate possible revenue recognition problems for a firm?