In general revenue recognition guidelines are broad, sometimes difficult to apply, and often vary by industry. The revenue recognition principle provides that revenue is recognized when (1) it is realized or realizable and (2) it is earned. Revenue can be recognized at the point of sale (delivery), before delivery (percent-of completion method)or after delivery (installment).The SEC has attempted to provide more guidance in the area of revenue recognition. In some cases there has been intentional misstatement of revenue to achieve better financial results.Instructions:

(a) Name three companies that have misstated revenue Of the three companies, include one that used the Channel Stuffing technique.

(b) Give the circumstances for each misstatement/fraud (how was it discovered, how was the misstatement accomplished, etc.)

(c) How much was revenue inflated in each case?

(d) Was there a criminal charge filed against the company or its employees?