Monday, May 08, 2006

Bausch & Lomb Accounting a Tangled Mess

Restatments and revenue recognition problems all over the place and they have a deadline of Oct 2006 to file their annual statement or they default on their debt. It sounds kind of serious on how the problem is escalating:

Bausch said in the filing that it expects the Korean investigation to result in revenue recognition adjustments for vision care sales in Korea from 2002 to 2005.

It said the unaudited impact of an accounting change would reduce previously reported net sales for 2002-2004 and the first and second quarters of 2005 to a total of $8.4 million.

Then we add this in:

The restatement of its prior-period financial results will include adjustments relating to revenue recognition for certain refractive laser sales; certain vision care transactions with a single distributor in Thailand; vision care transactions with two large distributors in Japan; vision care and cataract transactions with the distributor network in India; and the proper handling of certain sales related reserves in China.

I think they really need to looking at their Asian Division because all the problems seem to be in that persons department. I wonder if it is just a case of over aggressive salesmenship or does it go deeper then that?

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