Reported about 11 hours ago
UPS will pay $45 million to settle charges from the SEC regarding the improper valuation of its freight division. The SEC found that UPS misrepresented its earnings by not adhering to accounting principles when valuing the division, leading to inflated estimates. Despite its own analysis suggesting a maximum value of $650 million, UPS utilized an outside consultant who overvalued the division at around $2 billion. The SEC highlighted that UPS failed to act on essential fair value estimates, which would have resulted in significantly lower reported earnings.
Source: YAHOO