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SEC Staff Accounting Bulletin:
No. 101 – Revenue Recognition in Financial Statements
Securities and Exchange Commission
17 CFR Part 211
[Release No. SAB 101]
Staff Accounting Bulletin No. 101
Agency: Securities and Exchange Commission
Action: Publication of Staff Accounting Bulletin
Summary: This staff accounting bulletin summarizes certain of the staff's views in applying generally accepted accounting principles to revenue recognition in financial statements. The staff is providing this guidance due, in part, to the large number of revenue recognition issues that registrants encounter. For example, a March 1999 report entitled Fraudulent Financial Reporting: 1987-1997 An Analysis of U. S. Public Companies, sponsored by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission, indicated that over half of financial reporting frauds in the study involved overstating revenue.
Date: December 3, 1999
For Further Information Contact: Richard Rodgers, Scott Taub, or Eric Jacobsen, Professional Accounting Fellows (202/942-4400) or Robert Bayless, Division of Corporation Finance (202/942-2960), Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549; electronic addresses: RodgersR@sec.gov; TaubS@sec.gov; JacobsenE@sec.gov; BaylessR@sec.gov.
Supplementary Information: The statements in the staff accounting bulletins are not rules or interpretations of the Commission, nor are they published as bearing the Commission's official approval. They represent interpretations and practices followed by the Division of Corporation Finance and the Office of the Chief Accountant in administering the disclosure requirements of the Federal securities laws.
Jonathan G. Katz
Secretary
Date: December 3, 1999
[pic]
Part 211 - (AMEND)
Accordingly, Part 211 of Title 17 of the Code of Federal Regulations is amended by adding

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