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As usual, its mostly sophomoric gibberish (e.g., how the heck should I know what the SEC is saying to other companies?)

I'm not sure who asked that; I don't think it was anyone here. The question was, why is being told to do its revenue recognition in a manner that differs from other companies similarly situated? Amazon does theirs at shipment. The SEC rules that I can find online and have posted a few times now(*) seem to back up that method. Why is Overstock being told to change? Is it because of the large role partner fulfillment plays in your business?

I don't think this is "sophomoric gibberish". I think it's an interesting question. Most people would view your business as similar to Amazon, yet at the behest of the SEC you are making a change in your accounting which will put your revenue recognition method at variance with theirs (and, apparently, force an extensive, if not extremely material, set of restatements). This seems odd.



Interpretative Response: Generally, no. The staff believes that delivery generally is not considered to have occurred unless the customer has taken title and assumed the risks and rewards of ownership of the products specified in the customer's purchase order or sales agreement. Typically this occurs when a product is delivered to the customer's delivery site (if the terms of the sale are "FOB destination") or when a product is shipped to the customer (if the terms are "FOB shipping point").
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