this sucks, we will probably have price weakness as most don't understand what this means...as an accountant, this could be anything from a reconciliation process to following proper GAAP accounting, I think it is the latter and will be fixed by the auditors, probably revenue in the wrong periods but like someone else said, sales & revenue are still there!!! please don't sell
The contracts are real and specific about how they generate revenues. All the revenues are likely of the same type that have sustained the company for decades. But how and when you account for revenues can be stipulated by rules. Rules can be misunderstood, open to a variety of interpretations, or flagrantly violated.
Since the CFO was fired, it could have been incompetence or self motivated misrepresentation, which he paid for with his job.
He obviously did not cover his *** by getting approval from the CEO or BOD.
That said, the matter needs clarity as soon as possible. So,until they can make an agreed upon, fact filled statement, it's better to halt trading, IMO.