Ex-Disney accountant alleges major accounting fraud in parks and resorts division

[the_rich]

I’m honestly wondering, frankly. It seems like a good leap, but I don’t know if the numbers check out (nor where to find them readily).

2017 disney had 18.4 billion in revenue while universal had 5.4 billion. Attendance at disney was roughly triple.

 

[WDW Pro]

My best sources on this tell me this employee might have been a bit off their rocker. It's possible that there were systematic manipulations of revenue to boost the numbers, but there's no way the listed examples would ever get you close to the inflation totals claimed.

 

[John C. Shepherd]

Just remember, the whistlerBlower gets a take on the Fines. I worked for a company that had some thing, fired person upset with firing finds out when you do this you get a cut of the take. Boom

 

[BGibby]

I’d also be interested to see Park revenue changes year to year since 2000, I mean if we are talking huge jumps here then would seem a little suspicious no, however, I’m sure there’s a good explanation for why. But if they are “overstating” by 7 or 8 billion, that money doesn’t just pop up out of no where.

 

[WDW Pro]

I’d also be interested to see Park revenue changes year to year since 2000, I mean if we are talking huge jumps here then would seem a little suspicious no, however, I’m sure there’s a good explanation for why. But if they are “overstating” by 7 or 8 billion, that money doesn’t just pop up out of no where.

They cited double-counting guest compensation cards as a way to get the numbers up... and I'm sitting here thinking, "do you know what percent of a percent that number would add up to out of all total revenue?"

 

[the_rich]

I’d also be interested to see Park revenue changes year to year since 2000, I mean if we are talking huge jumps here then would seem a little suspicious no, however, I’m sure there’s a good explanation for why. But if they are “overstating” by 7 or 8 billion, that money doesn’t just pop up out of no where.

This is the best I could find, it's for the whole company. Doesn't look like any huge jumps.

 

[WDW Pro]

This is the best I could find, it's for the whole company. Doesn't look like any huge jumps.View attachment 399886

Also note these are revenues, not profits. Revenues should be rising with additional capacities, which is exactly what you see.

 

[BGibby]

Also if you think about pure attendance and pure revenue, 18.4 Billion dollars into 150 million attendees is $122.67 per one attendee which in the grand scheme of things doesn’t seem far fetched? Universal works out to $108.

 

[the_rich]

Also note these are revenues, not profits. Revenues should be rising with additional capacities, which is exactly what you see.

Well, yea I was looking for revenues because that's what the article was claiming.

 

[baymenxpac]

My best sources on this tell me this employee might have been a bit off their rocker. It's possible that there were systematic manipulations of revenue to boost the numbers, but there's no way the listed examples would ever get you close to the inflation totals claimed.

why are people so quick to trust corporations, specifically public ones whose survival depends on turning a profit for its shareholders?

i have no idea if these claims have merit, and frankly, neither do the vast majority of any of us here. it's just amusing to me that every news item that has broken in the past two days can somehow be *magically* explained away by "crazy" people with axes to grind.

EDIT [added this part]: also, want to know why a certain person constantly screaming "fake news" is problematic? because it gives license to anyone to just claim anything negative written about them is "fake," even when it comes from reputable reporters and news outlets that have and are beholden to journalistic ethics.

 

[ABQ]

Well, yea I was looking for revenues because that's what the article was claiming.

She ever respond to your tweet reply?

 

[lazyboy97o]

Just remember, the whistlerBlower gets a take on the Fines. I worked for a company that had some thing, fired person upset with firing finds out when you do this you get a cut of the take. Boom

Except the report is that the firing occurred afterwards, not before.

 

[the_rich]

She ever respond to your tweet reply?

Nope, no reply

 

[ABQ]

...... even when it comes from reputable reporters and news outlets that have and are beholden to journalistic ethics.

That's the trouble, there are not very many of those around in the Twitter "gotta be first to break the 'news' " days.

 

[baymenxpac]

That's the trouble, there are not very many of those around in the Twitter "gotta be first to break the 'news' " days.

completely disagree. there are PLENTY of them. they're just constantly under siege by an american public that prefers to be lied to. the new york times or the washington post or many, many other outlets don't run a story without two, independent sources. that's how it works. we make people go to j-school just to make sure.

 

[BGibby]

completely disagree. there are PLENTY of them. they're just constantly under siege by an american public that prefers to be lied to. the new york times or the washington post or many, many other outlets don't run a story without two, independent sources. that's how it works. we make people go to j-school just to make sure.

We also send accountants to school and require them to uphold a certain set of guidelines and good practice principles and yet here we are.

 

[baymenxpac]

We also send accountants to school and require them to uphold a certain set of guidelines and good practice principles and yet here we are.

okay, so that's comparable how? yes, some people aren't going to do their jobs. my criticism is the systemic distrust of the media, which has been bred by certain people in power, coupled with the erosion in perception of what people consider journalism. i don't think accountants have the same cross to bear, but i will not deny that run up to filing day is pretty hellacious.

 

[Chef Mickey]

IF 2008-2009 was in fact overstated by $6 billion and they officially reported $10.6 billion, then the actual revenue would have been $10.6B - $6B = $4.6B. $10.6B / $4.6B = 230%. Granted, I rounded the $10.6B down to $10B to get the 250% but that doesn't change much on the scale of things.

But honestly, I'm a bit shocked I have to explain this to someone in finance at a Fortune 10.

For the record, I'm not saying it's true (or false!) but the mini golf thing in the article made me laugh because of the receipt. I'm intrigued!

I asked you to explain because you overstated the error by saying 250%. Good thing we have the finance team to explain.

4.6 to 10.6 isn't a 250% or 230% increase. It's 130%.

More simply, if the number was $5B and reported as $10B, the overstatement would be 100% overstated, not 200%. You're getting percentages confused with saying 2X as much or 3X as much. Yes, $10B is twice as much as $5B, but the percent increase is only 100%, not 200%. Similarly, if you buy a stock at $5 and sell it at $10, you're up 100%, not 200%.

And don't come back saying that's what you meant. You said "blown up by a mere 250%" which is objectively wrong. If the SEC asked how much were the numbers inflated, they would have to answer 130%. You don't have to apologize to me, but don't act so smug unless you're 100% (pun intended) sure you're right.

That said, the stock is barely reacting so it's likely a big nothing or at least something the authorities and Disney already knew.

 

[BGibby]

okay, so that's comparable how? yes, some people aren't going to do their jobs. my criticism is the systemic distrust of the media, which has been bred by certain people in power, coupled with the erosion in perception of what people consider journalism. i don't think accountants have the same cross to bear, but i will not deny that run up to filing day is pretty hellacious.

I think I’m looking at this from a specific sense and you’re looking at this from a wholistic society standpoint which I agree but on this specific case I think we have no facts to actually determine if this is true or false and therefore the jump to conclusions on both sides is silly and we don’t know what we don’t know and we know nothing.

 

[baymenxpac]

I think I’m looking at this from a specific sense and you’re looking at this from a wholistic society standpoint which I agree but on this specific case I think we have no facts to actually determine if this is true or false and therefore the jump to conclusions on both sides is silly and we don’t know what we don’t know and we know nothing.

yup, agreed!