ABC news:
The U.S. securities regulator was aware of Wall Street's potentially questionable accounting practice of classifying repurchase agreements as sales instead of borrowings long before the collapse of Lehman Brothers raised the issue, the Wall Street Journal reported on Wednesday.
Since 2004, the Securities and Exchange Commission (SEC) has questioned 115 transactions by 102 different companies to assess if they accounted properly for repurchase agreements, or repos, among other short term trades, the Journal said citing a report prepared by research firm AuditAnalytics.com.
AuditAnalytics.com has reviewed more than 115,000 comment letters the SEC had sent to companies asking questions about their securities filings, the paper said.
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