Financial Accounting Blog

Sunday, May 02, 2004

This article reports that the Securities and Exchange Commission launched an investigation into the Bally Total Fitness Holding Corp's recent restatement, which stemmed from the timing of the recognition of pre-paid dues.
Bally revised its 2003 results in March to correct revenue errors amounting to about $43 million over seven years. According to the company, the revenue errors accelerated dues recognition for certain prepaying members. The $43 million was part of a $675 million non-cash charge related to a 2003 change in the company's accounting system in 2003, added the fitness-club operator.