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

Slpy3270

Slpy3270

Well-Known Member
Original Poster
From MarketWatch:

A former Walt Disney Co. accountant says she has filed a series of whistleblower tips with the Securities and Exchange Commission alleging the company has materially overstated revenue for years.

Sandra Kuba, formerly a senior financial analyst in Disney’s revenue-operations department who worked for the company for 18 years, alleges that employees working in the parks-and-resorts business segment systematically overstated revenue by billions of dollars by exploiting weaknesses in the company’s accounting software.

Kuba said she has met with officials from the SEC on several occasions to discuss the allegations.

Can't see how Chapek and Iger survive this one.
 
Princess Leia

Princess Leia

Well-Known Member
Slpy3270 said:
From MarketWatch:

A former Walt Disney Co. accountant says she has filed a series of whistleblower tips with the Securities and Exchange Commission alleging the company has materially overstated revenue for years.

Sandra Kuba, formerly a senior financial analyst in Disney’s revenue-operations department who worked for the company for 18 years, alleges that employees working in the parks-and-resorts business segment systematically overstated revenue by billions of dollars by exploiting weaknesses in the company’s accounting software.

Kuba said she has met with officials from the SEC on several occasions to discuss the allegations.

Can't see how Chapek and Iger survive this one.
Click to expand...
What is even happening this week??
 
Jimmy Thick

Jimmy Thick

Well-Known Member
Slpy3270 said:
From MarketWatch:

A former Walt Disney Co. accountant says she has filed a series of whistleblower tips with the Securities and Exchange Commission alleging the company has materially overstated revenue for years.

Sandra Kuba, formerly a senior financial analyst in Disney’s revenue-operations department who worked for the company for 18 years, alleges that employees working in the parks-and-resorts business segment systematically overstated revenue by billions of dollars by exploiting weaknesses in the company’s accounting software.

Kuba said she has met with officials from the SEC on several occasions to discuss the allegations.

Can't see how ... Iger survive this one.
Click to expand...

SEC: " Mr. Iger do you know anything about overstating revenue within the parks-and-resorts division?"

Bob Iger: " No "

SEC: " Ok thank you Mr. Iger, have a good day "


Seriously if anyone really thinks anything will get back to Iger they are fooling themselves. Even if he is guilty, highly doubtful to begin with, but even if he is there are so many other people strategically in place to take the fall for anything, unless they have audio proof of him making illegal directives to people, Iger getting busted will never happen.
 
Chef Mickey

Chef Mickey

Well-Known Member
As an investor, I hope it's not true.

These things are typically a lot more complex than on the surface. I'd take what an ex-employee with a potential vendetta with a grain of salt until we get some real facts.

A lot of allegations can be made, but few probably have the entire picture. With the price increases of the last decade, Parks and Resorts seem the least likely candidate for fraud. The revenues seem to make sense at a high level.
 
cosmicgirl

cosmicgirl

Well-Known Member
In just one financial year, 2008-09, Disney’s annual revenue could have been overstated by as much as $6 billion, Kuba’s whistleblower filing alleges. The parks-and-resorts business segment reported total revenue of $10.6 billion in 2009, according to its annual report filed with the SEC.
Click to expand...
Blown up by a mere 250%. *gulp*

The golf thing somehow rang a bell: when we used free miniature golf included with our tickets they gave us a receipt for the full amount and I thought it was peculiar compared to the $0 receipts you get on the dining plan. It all makes sense now! :hilarious:

This is promising to be a fun week. It's only Monday!
 
wdwperry

wdwperry

Well-Known Member
cosmicgirl said:
Blown up by a mere 250%. *gulp*

The golf thing somehow rang a bell: when we used free miniature golf included with our tickets they gave us a receipt for the full amount and I thought it was peculiar compared to the $0 receipts you get on the dining plan. It all makes sense now! :hilarious:

This is promising to be a fun week. It's only Monday!
Click to expand...

That's really hard to believe that they could get away with that level of fraud. 250%????
 
ABQ

ABQ

Well-Known Member
Do they still use SAP for an ERP at TWDC? If so, I'd love to hear more about this supposed exploit. Billions of dollars overstated? Makes it sound like counterstrike level cheating.
 

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