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Bowater: Yet Another Favorable 108 Correction

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By Douglas A. McIntyre Published
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FRom AAO Weblog

Bowater, the newsprint producer, corrected a collection of previously-considered immaterial errors it was carrying on its balance sheet, noted in its 10-K filing. As has been noted in other recent posts – the correction resulted in an increase to retained earnings.

(I’ve been noting these things as I find them; I’m not looking for just favorable adjustments. And I’m at a loss to explain the string of positive adjustments resulting from the application of SAB 108. For now, I’m chalking it up to mere coincidence.)

Reasons for the retained earnings adjustment: incorrect vacation liability accruals dating back to the 1980’s. (Van Halen was inducted into the Rock & Roll Hall of Fame this week – and these mistakes being fixed just now are as old as the band!) Deferred tax slip-ups. And incorrect accounting for purchased materials.

All in all, an adjustment of only about $9 million to beginning retained earnings. Notable for the direction of correction, not the amount.

http://www.accountingobserver.com/blog/

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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