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  "documentTitle": "TAL Education Group (TAL)",
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  "notes": "Includes a footnote regarding sensitivity to tuition rate assumptions.",
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      "text": "The deferred revenue in the Firstleap acquisition appears to be inflated by 2x to 3x or more.",
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      "text": "deferred revenue overstatement: 176%",
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      "text": "If we once again assume an eight-month tuition of 15,000 RMB, then carry out the same deferred revenue adjustments as we did before, the fair value of Firstleap's deferred revenue comes out to $16 million. This is an overstatement of over 175%.",
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      "text": "The deferred revenue in the Firstleap acquisition appears to be inflated by 2x to 3x or more. Since TAL claimed the $45.09 million in deferred revenues upon acquisition in January 2016, most, if not substantially all, of the inflation of $21 to $29 million or more would have flowed through the FY2017 income statement.",
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      "text": "If the lower tuition rate of Rmb 11,000 were applied, it would have driven the estimated fair value of deferred revenue at January 22, 2016 down by another ~25%.",
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