Under Armour investigation focuses on “revenue recognition.” What’s that?

Marielle Segarra Nov 4, 2019
HTML EMBED:
COPY
People walk by an Under Armour store in Manhattan in 2017 in New York City. Spencer Platt/Getty Images

Under Armour investigation focuses on “revenue recognition.” What’s that?

Marielle Segarra Nov 4, 2019
People walk by an Under Armour store in Manhattan in 2017 in New York City. Spencer Platt/Getty Images
HTML EMBED:
COPY

The sportswear company Under Armour on Monday confirmed federal officials have been looking into its accounting practices for more than two years. Under Armour says it hasn’t done anything wrong. The Wall Street Journal, which broke the news, said the probe includes both criminal and civil investigations and that authorities are focusing on something called revenue recognition. What exactly is revenue recognition, and why does it matter?

Click the audio player above to hear the full story.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.