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The cleanup of cash flow statements continues…

Yesterday, Pier 1 Imports (NYSE:PIR) filed a non-reliance notice as part of its 8-K filing for its fourth quarter earnings release. In the filing, Pier 1 noted that it had incorrectly accounted for the sale of receivables in the last several years; what jolted them awake were remarks by an SEC staffer at the December 2005 SEC/PCAOB Current Developments Conference. (Link to 2006 conference registration is here. P.S. - I’m affiliated with it; I’m on the AICPA committee that puts the thing together).

No link to the SEC website for the full remarks of the staffer - they’re not on it. I believe the triggering remarks were those of Ms. Rachel Mincin, who advised attendees that they should not classify principal payments received on retained interests from a securitization as an “operating cash flow

Source: Cash Flow Spring Cleaning At Pier 1 Imports (PIR)