You should be arrested for posting this kind of crap on a public message board. I am a CFA charter holder, not that you would know what that is, and have never heard a bigger crock. There is no "contractual" obligation to report marketing expenses in their concentrate sales to National Beverage if there were little to no expenses to report. In fact, most analysts have major increases in those expenses in the 1st and 2nd quarter as they begin to spend behind the brand.
I would bet the ranch that you don't even know what kind of accounting fraud occured at Enron. That is because you are a moron. Comparing the two makes you look like a bigger idiot.
Safety, does their contract with FIZ explicitly SAY $1M is consideration for concentrate AND advertising? If so, only the part of the $1 million related to the concentrate alone should be booked, but it wouldn't make sense to recognize ad expenses up front, you would want to match those to the period when advertising occurs.
Also, jsdagirl, I think you're either a very thoughtless CFA or more likely a poser. When I get my charter I'm off these boards, because a) I'll have much better uses for my time and b) calling someone a moron and flashing the CFA name is very discrediting to the designation.
Safetymargin has no understanding of accounting, my son in second grade knows more than he does. His post is a joke and considering he's posting around the clock all weekend, he's obviously a panicking short. He's probably the one that pulled off the naked short on JSDA.