Boeing Co (BA) Stock Suffers Steep Decline on Accounting Probe by the SEC

-

The shares of Boeing Co (NYSE:BA) are declining sharply due to the report that it is facing an investigation by the U.S. Securities and Exchange Commission (SEC).

The SEC is investigating whether Boeing properly accounted for the costs and expected sales of the 787 Dreamliner and the 747 Jumbo aircraft, according to Bloomberg based on information from people familiar with the matter.

Whistleblower filed complaint against Boeing

The report indicated that a whistleblower filed a complaint against Boeing, which prompted the Commission to launch an inquiry on the aerospace company. The investigation is focused in the long-term profitability of the 787 Dreamliner and the 747 Jumbo aircraft.

Both planes are considered among the most iconic from Boeing because of their technological advancements. The 787 Dreamliner and 747 Jumbo Jet are also well-known for the headaches encountered the company during the development process.

The whistleblower submitted internal documents and data about Boeing’s accounting method, according the people with knowledge about the situation. One person said the whistleblower first reported his concerns about the company more than a year ago.

The SEC is reviewing the financial reporting method called program accounting, which allows the company to spread the large and upfront manufacturing costs for the planes for many years.

The aerospace industry uses program accounting for decades. The SEC allows it because it is fully compliant with Generally Accepted Accounting Rule. However, some critics argue that the system provides companies like Boeing too much flexibility to fix earnings and hide potential losses.

Boeing spokesman Chaz Bickers and SEC spokesman John Nester declined to comment on the issue. Mr., Bickers told Bloomberg, “We typically do not comment on media inquiries of this nature.

Stock performance

The stock price of Boeing dropped more than 11% to $103.30 per share at the time of this writing around 12:57 in the afternoon in New York.

Over the past year, the aerospace company lost more than 29% of stock value. The company’s shares dropped from its highest trading price of $158.83 each to as low as $102.10 each.

Avatar
Marie Cabural
Marie holds a Bachelors Degree in Mass Communication. She has an extensive experience in Journalism. Marie started in the industry in high school and her forte is news and editorial writing. She previously worked as a news writer and radio program producer at Nation Broadcasting Corporation (NBC) in the Philippines. She has also experience in advertising, events management, and marketing. She was a former Young Ambassador of Goodwill to the 26th Ship for Southeast Asian Youth Program (SSEAYP). She also writes for ICANNWiki, ValueWalk, and the The Motley Fool Blog Network. You can contact Marie [email protected]

Share this article

Recent posts

Best Spy Software For Android

All parents have a pretty good reason why you might want to use spy software. After all, kids nowadays know so much more about...

11 Key Tips for Preventing Car Theft

The truth about car theft is that about 50% of them would have been prevented if the vehicle owner had taken precautionary steps, such...

Most Unusual and Weird Mobile Apps You Must Have 2020

Without those valuable apps on our smartphones, tablets and hand-held devices, our lives would certainly be much more complicated and less organized - that's...

Best Indoor Cycling Bike Under $500 2020

Working out is one of the best things you can do for yourself. You will look better, feel amazing and you will keep your...

7 Things You Need When Renovating Your House

Home renovating is always fun and exciting. And although it costs a heck of a lot of money, it gives our homes the much-needed...

Popular categories

LEAVE A REPLY

Please enter your comment!
Please enter your name here

What is 5 + 9 ?
Please leave these two fields as-is:
IMPORTANT! To be able to proceed, you need to solve the following simple math (so we know that you are a human) 🙂

Recent comments

rayschoon.marsfet.co.nl on How to manage your PPC campaign
https://usahealthreports.blogspot.Com on The future is here with Proven Skincare
Dale Goodman on Yukon Men Cancelled?
Ryan wants more Korra kicking ass. Varrick is bad ass!! on The Legend Of Korra Season 5 Release Date, News and Updates
Guess I'll just go jump off a duck. on Aoharu x Machinegun Season 2 Release Date
lillian bradley-gares on Yukon Men Season 7 Latest News
human lovers suck on Zootopia 2 Sequel Confirmed
Sharon Genth on Yukon Men Cancelled?
Yessenia Martínez Martínez on Taxi Brooklyn Season 2 release date and more!
crysostomos haloftis on Cowboys To Bring Back Dez Bryant?
Randolph Johnson on Cowboys To Bring Back Dez Bryant?
Matthew Brooks Brown on Cowboys To Bring Back Dez Bryant?
Charles T DeLattre on Cowboys To Bring Back Dez Bryant?
Wojciech Oszczakiewicz on Top 5 Worst Finishers Of All Time
Bill carpenter on Counting Cars Cancelled?
Karen on No Gentleman
jan ronk on No Gentleman
Vcoutelier on No Gentleman
Shanna on No Gentleman
bily gilliam on Zootopia 2 Sequel Confirmed
Barbara on No Gentleman
F. Hawker on No Gentleman
Patrick Charles Pineda on Mr. Pickles – Season 3 Release Date
David Woodcock on River Season 2 Release Date
David Gabriel Taylor on Seraph of the end Season 3 Release Date
Lieutenant BaconWaffles on Beetlejuice 2 Release Date
Lana Patrizia Nahapetian on Junjou Romantica Season 4 Latest News
John Knehans on Counting Cars Cancelled?
Crusty weave on Zootopia 2 Sequel Confirmed
Prince Yohanan Ben Yahudah on Colin Kaepernick in Dallas Cowboys?
Anata no Tomodachi on Trinity Seven Season 2: Release Date
Awesome1pc2 Ananymous on SVTFOE season 3 release date
LighthawkDemon on Zootopia 2 Sequel Confirmed
Robert Presti Sr on Counting Cars Cancelled?
James STanley on SVTFOE season 3 release date
Phương Phiêu Diêu on Barakamon Season 2 Release Date
𝕲𝖍𝖔𝖚𝖑 on Re:Zero Season 2 Air Date and Spoilers
ÃᖇᑭᗴᎶᎶᎥØØℱβŁỮ€ŞŤ€ᗴŁ✔ᶰᵉᵏᵒᶠᶤᵉᵈ on High School DxD Season 4 – Updates, Spoilers, Air Date
Central Intelligence Agency on Highschool of The Dead Season 2 Release Date
Senator D. Plorable (I-USA) on Windows 11 – What It Would Look Like?
Ibrahim Durrani on Windows 11 – News and Updates
Joshua Adams on Zootopia 2 Sequel Confirmed
renamoretti1 on Empire Renewed for Season 4
Sara Doodnath on Justified Season 7 Cancelled
Just Another Random Person 🙂 on Code Geass Season 3 Release Date Speculations
Sara Doodnath on Justified Season 7 Cancelled
Joyce Mitchell on Yukon Men Cancelled?
Mike-Janet Sowell on Yukon Men Cancelled?
Shiranami Kaishido (Shi) on Reigns Beating Strowman Was A Bad Decision
eduard karpoev on Shimoneta Season 2: Updates
Dendy Planeptune on Shimoneta Season 2: Updates
Glenn Martin on Yukon Men Cancelled
WillFanofMany1 on Zootopia 2 Sequel Confirmed
WillFanofMany1 on Zootopia 2 Sequel Confirmed
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Yatogami ✔ᵛᵉʳᶦᶠᶦᵉᵈ on Noragami – Season 3 Release Date, News & Update
Garland Remington on The Curse Of Oak Island Canceled?
Patrick Lambert on Zootopia 2 Sequel Confirmed
Astracifationo on Zootopia 2 Sequel Confirmed
Astracifationo on Zootopia 2 Sequel Confirmed
Joy McGowan Elson on Hemlock Grove Season 4 Canceled
🅼🅾🅳🅳🅴🅳__ 🅷🅰🆇🅾🆁 on Seraph of the end Season 3 Release Date
jonnysw on No Gentleman
Kevin Kylie on No Gentleman
Victor Szendzielarz on No Gentleman
Usunder on No Gentleman
David E on No Gentleman
David D'Angelantonio on The Curse Of Oak Island Canceled?
MAC on No Gentleman
Angriest_Beaver on Zootopia 2 Sequel Confirmed
Angriest_Beaver on Zootopia 2 Sequel Confirmed
Gingerbread2 on No Gentleman
disqus_feN63FpcdG on The Curse Of Oak Island Canceled?
disqus_feN63FpcdG on The Curse Of Oak Island Canceled?
Michael on No Gentleman
Trumpworksforrussia on No Gentleman
Lisa Amey on No Gentleman
William McGrath on No Gentleman
tineras on No Gentleman
D. Kaye on No Gentleman
DardaniaLion on GTA 6 – News & Update
herp derperson on Log Horizon Season 3
Debbie Hillen-Reyes on Lucifer Season 3: Will it happen?
Patrick Lambert on Zootopia 2 Sequel Confirmed
Carol Shingle Swenson on The Curse Of Oak Island Canceled?
SiliconAddic on Zootopia 2 Sequel Confirmed
SeiRruf MalaWolSki on Zootopia 2 Sequel Confirmed
YanossGaming on Zootopia 2 Sequel Confirmed
Ryan Woodward on Zootopia 2 Sequel Confirmed
NoRightToNotBeOffended on The Curse Of Oak Island Canceled?
Nathaniel D Vitchner on The Curse Of Oak Island Canceled?
Sandy Rehfuss Scott on The Curse Of Oak Island Canceled?
Furious Shiroe on Log Horizon Season 3
Timothy Ouellette on Black Bullet Season 2?
Charles Gauthier on The Chevy Bolt vs. Tesla Model 3
baz on
Acebravo on
havasu46 on
RobertJGood on
Acebravo on
Pjews on
Acebravo on
BritishGuy94 on
Kurt Windibank on
Kurt Windibank on
Bill on
LP on
Frenchman75 on
johns19 on
Jimmy Witts on
Pjews on
Devon Ho on
Padraig Aidan Doherty on
Nick on
MF33 on
Acebravo on
Disqusr on
DavidB23 on
Bob Bigellow on
Joh Lei on
rbestlab on
Joe Maristela on
Acebravo on
Zachary Braganza on
Acebravo on