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  "documentTitle": "TAL Education Group (TAL)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2018-06-13 00:00:00",
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  "notes": "The slide uses a regulatory standard (ASC 850) as a benchmark to expose a failure in the company's reporting.",
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      "text": "TAL’s related party disclosures generally fail to provide required detail. Opacity is the friend of fraud, and in this case is a failing on the part of Deloitte.",
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      "text": "TAL's disclosures fall far short of meeting the requirements for the transactions involving learning center leases, teacher payments, and student tuition. Given the large number of investees in which TAL holds an interest for which it provides little or no detail, we suspect these findings represent only a small portion of larger systemic problems.",
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      "text": "ASC 850-10-50-1: The disclosures shall include: a. the nature of the relationship(s) involved, b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements, c. The dollar amounts of the transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period, d. Amounts due from or to related parts as of the date of each balance sheet presented, and, if not otherwise apparent, the terms and manner of settlement...",
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      "text": "TAL's related party disclosures generally fail to provide required detail. Opacity is the friend of fraud, and in this case is a failing on the part of Deloitte. In FY2016 and FY2017, TAL's related party disclosures do not identify the counter parties associated with current balances due, the nature of the transaction, nor the dollar amounts of the transactions themselves as required by ASC 850",
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      "text": "Audit Failure: TAL's Missing Related Party Disclosures",
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