This is a great "real world" prelude to our next section on Asset Impairments.

Please read the following article:

Peloton Delays 10-K Annual Report to Complete Accounting - WSJ.pdf

Question:

Discuss one item in this article that you found interesting and how that item relates to our ongoing discussions on financial reporting.

"It's not a surprise issue," Mr. Johanns said, speaking generally. "If a company knows they're going to exit a certain type of their operations, then they know that there are accounting implications." Peloton's exact circumstances are unclear, but the company might have been under time pressure to obtain data to determine the fair value of its warehouses, shortly after having decided to eliminate some of them, Mr. Johanns said. The company reported a loss of more than $1.2 billion in the most recent quarter, as fitnessequipment sales plunged and costs connected with its turnaround effort surged. It recorded a loss of $2.8 billion in the year ended June 30 . The company also changed its chief executive and chief financial officer earlier this year. Barry McCarthy succeeded Peloton co-founder John Foley as CEO in February and Liz Coddington stepped in as CFO in June after Jill Woodworth exited the role. U.S.-listed companies most commonly delay filings because of issues related to debt and equity securities and unanticipated natural events, such as weather or illness, according to a review of filings from 2017 to Aug. 30 by research firm Audit Analytics. Among accountingrelated reasons for a filing delay in that period, asset impairments were the fourth most common, behind securities, mergers and acquisitions, and revenue recognition, data show. Late filings totaled 2,112 this year through Aug. 30, up from 2,007 in the prior-year period, Audit Analytics said. Write to Sharon Terlep at sharon.terlep@wsj.com and Mark Maurer at Mark.Maurer@wsj.com