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

Marielle Segarra Nov 4, 2019
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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?

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