Financial Accounting Blog

Sunday, April 25, 2004

The Atlanta Business Chronicle reports that NDCHealth Corp. has has received notification that the Securities and Exchange Commission is conducting an informal inquiry relating to revenue recognition matters.
On April 8, the first of several suits seeking class action was filed alleging NDC issued quarter after quarter of strong financial results, but failed to disclose that the financial results were only made possible through improper revenue recognition practices in violation of Generally Accepted Accounting Principles.