General Electric Co [GE] released an update on April 13, which among other things clarified issues related to the adoption of the new revenue recognition standard.
This is the second time that GE stock dropped following the release of the updated adoption numbers. And although there was volatility following the releases, part of that instability could be explained by the way GE discussed its revenue recognition practices.
In our recent FactSet article, Audit Analytics took a deeper look into GE’s ASC 606 and SEC investigation disclosures.
GE provided two relevant pieces of information (both were previously disclosed during the January conference call). The first piece was related to the impact of the new revenue recognition rule and the second was related to the SEC investigation.
Key Findings include:
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