Diebold to Restate Results Following ProbeBy Baselinemag | Posted 2008-01-15 Print
Diebold said it would restate its financial results for 2003 through 2006 and the first quarter of 2007 after a regulatory review that led it to adopt a new accounting method for recognizing revenue.NEW YORK(Reuters) - Diebold Inc., a maker of automated teller machines, said on Tuesday it would restate its financial results for 2003 through 2006 and the first quarter of 2007 after a regulatory review that led it to adopt a new accounting method for recognizing revenue.
The company, whose accounting has come under scrutiny by the U.S. Securities and Exchange Commission and U.S. Department of Justice, said it would file amended financial statements as soon as possible after its review is completed, expected by the end of January.
Effective immediately, Diebold said it would recognize revenue at the same time a product is delivered to a customer.
The probe and the company's own review have centered around its use of "bill and hold" revenue recognition. Under "bill and hold," a sale is recorded and ownership is given to a customer, but delivery takes place in a later period.
Diebold said the government investigations are continuing. (Reporting by Lilla Zuill; editing by John Wallace)
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