UPS Pays $45 Million Fine For Improperly Valuing Its Worst-Performing Business
The Securities and Exchange Commission (SEC) announced on Friday that it settled charges against United Parcel Service Inc. (NYSE:UPS) for materially misrepresenting its earnings because it failed to follow generally accepted accounting principles (GAAP) when valuing one of its worst performing businesses.
The SEC found that UPS did not record a goodwill impairment for its UPS Freight business division in 2019. If UPS had properly valued Freight, its earnings and other reported items would have been materially lower, the SEC said.
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“Goodwill balances provide investors with valuable insight into whether companies are successfully operating the businesses they own,” said Melissa Hodgman, Associate Director at SEC.
“Therefore, it is essential for companies to prepare reliable fair value estimates and impair goodwill when …
Full story available on Benzinga.com