By  on November 19, 2019

The ongoing federal inquiry into how Under Armour Inc. reported its earnings around 2016 shows how the government targets accounting practices involving the way in which companies record their sales.

Under Armour broached the topic of the investigation during its third-quarter earnings call earlier this month, saying it was cooperating with the U.S. Securities and Exchange Commission and the U.S. Department of Justice for more than two years. The company acknowledged the investigation amidst reporting by the Wall Street Journal about its apparent practice of moving revenues from one quarter to another, and of potentially encouraging retail customers to accept earlier shipments. 

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