The Securities and Exchange Commission has asked videogame publisher Take-Two Interactive Software to explain its accounting on certain impaired assets and one-tie charges, as reported in Baron’s business magazine.
According to Baron’s, the SEC in May asked Take-Two’s chief financial officer why its books place high carrying values on certain impaired assets. In June, the agency asked the company how its one-time charges complied with accounting rules, the paper reported. And in August, a SEC letter asked why the company grants 90 and 120-day payment terms and requested an accounting of cash payments on its receivables. There was no evidence that the SEC’s enforcement division is investigating Take-Two but that the letters suggest concern over its accounting for revenues and expenses, citing researcher John Gavin who obtained the SEC’s letters.
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