Uber Technologies Inc are under attack again, this time for its financial reporting and have drawn criticism from accounting experts, who say it may even contradict the company’s own auditor’s published advice to clients and investors.
Uber Technologies Inc said it believes it has the blessing of the Securities and Exchange Commission to report financial results without the portion of rider fares that goes to drivers, reported earlier this week by MarketWatch.
On Wednesday, MarketWatch reported that after consultation with the SEC and auditor PwC, Uber adopted new accounting rules that allow it to report only the net revenue that goes to the company when a transaction takes place, leaving out the drivers’ take completely.
Uber said it requested the regulator’s approval in what’s called a “preclearance” letter to the SEC’s chief accountant and noted PwC agreed with its conclusions. The SEC declined to comment on whether Uber had precleared its revenue-recognition approach.
Uber declined to provide to MarketWatch with a copy of its letter to the SEC or the regulator’s response.
“Uber is an accounting opportunist, and it looks like PwC is trying to accommodate them instead of pushing back as they should.”
J. Edward Ketz, an associate professor of accounting at Pennsylvania State University, said Uber is foolish to not report what it pays drivers even if it doesn’t have to.
“That statistic is an important data point for investors in the evaluation of how well the company is doing because it helps in the estimation of future business,” Ketz told MarketWatch. “Some investors will walk away from the firm if Uber does not allow them to understand and quantify its business model.”
- A Cabinet minister is alleged to have placed his hand on the thigh of a female journalist and said 'God, I love those t*ts';
- Anonymous reports suggested a second senior minister had an affair with a junior female aide who is also now an MP;
- A Liberal Democrat peer was rumoured to have invited female journalists to lunch, telling them to wear knee-high boots and short skirts;
- MPs were said to be sharing stories about a Conservative who allegedly takes pictures of young men in compromising positions and uses them to extract sexual favours;
- It also emerged that women working at the Scottish parliament have been victim to a 'catalogue' of sexual harassment incidents, according to a high-profile lawyer;
- Mrs May's former communications chief said whips often kept incriminating evidence to push MPs into following the party line in votes.
Last week Mrs May described the sex pest claims as deeply concerning and encouraged victims to report their allegations to the police. Overnight she wrote to Mr Bercow to demand the establishment of a grievance procedure to deal with Westminster harassment complaints.
The Prime Minister said: 'It is important that those who work in the House of Commons are treated properly and fairly.'
36 Tory MPs are engulfed in these sex pest claims, compiled yesterday by Conservative researchers. That's more than 10% of their sitting MPs in the commons.
Source : MarketWatch, Twitter, The Times and DailyMail.