Diebold, Inc. said it may decide to restate its financial statements for the year ended December 2006 and the first quarter of 2007 after it completes an in-depth analysis of its revenue recognition practices.
The company Tuesday said it has been discussing with the Office of the Chief Accountant of the Securities and Exchange Commission its method of recognizing certain revenue on a “bill and hold” basis within its North America business segment. As a result, Diebold, which makes self-service delivery and security systems, said it will discontinue the method in both its North American and international businesses.
Diebold said it expects to take at least 30 days to determine a new revenue recognition method. The company noted that only 11 percent of its 2006 revenue was accounted for with the “bill and hold” method. It added that the change in the timing of revenue recognition would not impact previously reported cash from operating activities or the company’s net cash position.
Diebold said that once it files the amended financial reports, it will then file its reports for the second and third quarters of 2007 and resume its regular financial reporting schedule.