Media Updates, page-13004

Do anyone think this passage below has any relationship to A2?

A typical way to do so is when companies recognise sales as revenue before payment is collected from customers. A more extreme version of this is called “channel stuffing.” This is where a company makes a large shipment to a customer at the end of an accounting period (recorded as revenue). However, the customer may end up returning those goods.

In 2016, US pharmaceutical company Valeant got into hot water after recording revenue as drugs were sent to a distributor before they were sold and reported to investors that the demand for the drugs in question was significantly higher. However, the prescriptions for these drugs declined. Ultimately Valeant was forced to restate their results for 2014 and 2015, and shareholders saw 70% shaved off the company’s share price.