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Plummeting home sales and plummeting stock prices are bad enough. Accounting woes just top it all off.

On Friday, Beazer Homes (BZH) filed a notice of late filing for its June quarter 10-Q. The reason for this is that in prior periods, its prior chief accounting officer may have stuffed its reserves and accrued liabilities for land development costs and costs to complete houses, “in excess of amounts that would have been appropriate under generally accepted accounting principles.”

As the NT filing points out, those reserves and other accrued liabilities would have lowered operating expenses if reversed in later periods - but it stopped short of saying that such reversals had occurred.

The forensic accountants are still sifting, but nothing is certain yet. Curious preview: the company “does not believe that the amounts at issue with respect to these reserves and accrued liabilities during the quarterly and nine month periods ended June 30, 2006 and 2007 are quantitatively material.”

Does that mean they might be qualitatively material? Wait for the movie.

BZH 1-yr chart:

BZH 1-yr chart

Source: Accounting Problems Plague Beazer Homes