The U.S. Securities and Exchange Commission (SEC) has criticized Tesla Motors (
The SEC and Tesla exchanged letters in September and October, in which the regulator asked Tesla several times how it would change its non-GAAP measures reporting in a way that would comply with the
“Non-GAAP measures that substitute individually tailored revenue recognition and measurement methods for those of GAAP could violate Rule 100(b) of Regulation G,” the SEC says.
“We note that you adjust your non-GAAP measures to add back the deferred revenue and related costs for cars sold with resale value guarantees and where you collected the purchase price in cash, which substitutes an individually tailored measurement method for those of GAAP.”
The SEC was also asking Tesla to provide information on how it would change its reporting and how it plans to comply with the commission’s reporting guidance.
Then on September 23, the SEC
Commenting on the use of ‘tailored’, Olga Usvyatsky, vice president of research and CPA at Audit Analytics, commented for
“Whenever the SEC uses that specific term it’s a clear indication that this specific adjustment should not be used, it’s very strong language.”
In its August Q2 update
Then, on October 2, after the correspondence with the SEC had begun, Tesla
By Tsvetana Paraskova for Oilprice.com
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