More people on holiday, fewer people paying attention. It’s a perfect recipe for a corporate disclosure to fly beneath the radar.
Daily Journal Corporation
The California-based legal publisher is also big shareholder in many US banks, thanks to the leadership of its chairman and Berkshire Hathaway number two Charlie Munger. On Monday it said that one of its quarterly earnings statements “should no longer be relied on.”
The problem is an expected change in how some deferred revenue will be taxed. The company said it reached this decision on December 29 — Monday — after discussing it with its new auditor, BDO.
Daily Journal had removed its prior auditor, “Big Four” member EY, in June after a dispute over its internal controls. Daily Journal also said it had notified the NASDAQ on Tuesday that it won't be able to file a timely annual report, which violates the exchange's listing rules. The company also disclosed that it “it will not provide preliminary, unaudited results for fiscal 2014 until it has more certainty regarding BDO's position on the income tax accounting.”
Denis Balibouse / Reuters