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Most of that cost, however, includes a $2 billion stock-based compensation expense due to the recognition of expense related to RSUs related to the IPO, the company said in its earnings report.
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One measure we used was current accruals, where managers accelerate recognition of revenues and delay recognition of expenses.
The restatement accelerates the recognition of expenses, changing the periods during which certain costs are recognized, the company said.
Similarly, a study by two accounting professors found that executives pursuing M.B.O.s tended to accelerate the recognition of expenses and delay the recognition of revenue, making their companies look less profitable than they were.
That agency had concluded in a report a few weeks earlier that Fannie Mae deliberately violated accounting rules and engaged in "cookie jar" accounting, dipping into reserves or postponing the recognition of expenses.
He repeated the office's accusation that top management had deliberately violated accounting rules and engaged in "cookie jar" accounting, dipping into reserves or postponing the recognition of expenses to smooth out quarterly earnings, meet financial projections and earn larger bonuses.
Despite mandated recognition of the expense, some firms' managers exclude it from non-GAAP earnings and some firms' analysts exclude it from Street earnings.
The recognition of depreciation expense for a particular asset commences in the year in which the asset is placed into service.
Among many provisions, the rules set targets for the staffing of juvenile facilities, but in recognition of the expense, this requirement does not take effect for five years, unless otherwise required by existing rules or judicial orders.
The IASB plans to require recognition of these expenses in the income statement.
But deferring recognition of stock option expense flies in the face of both accounting principles and economic reality.
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