Overstock.com Admits They’re Clueless About the Accounting Rules

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This week Overstock.com (NASDAQ:OSTK) notified the public that they wouldn’t file their third quarter 10-Q on time. The reason:

The registrant has been unable to complete its financial statements for the quarter ended September 30, 2009, as it is continuing to analyze the proper accounting treatment for $785,000 the registrant received during the first quarter of 2009 as repayment  under a new agreement with the vendor for amounts the registrant overpaid to the vendor in 2008 and early 2009.  The registrant believes the amount is properly recognizable in the first quarter of 2009, when the cash was received.  However, the registrant is continuing to review the issue, and may ultimately conclude that the amount should have been recognized in 2008. Continue reading