bill and hold
A bill and hold transaction occurs when a company recognizes revenue before delivery takes place. Normally a revenue is not recognizable until goods are delivered or services are rendered.{{Cite web|url=https://www.sec.gov/interps/account/sab101.htm|title = SEC Staff Accounting Bulletin No. 101}} Exceptions are made when a customer specifically requests that the vendor delay delivery and has a legitimate business reason for the request.{{Citation needed|date=October 2012}}{{Cite web|url=http://answers.google.com/answers/threadview/id/603220.html|title = Google Answers: Accounting: Recognizing revenue}}
Alleged abuse by Nortel
Nortel Networks Corporation was a multinational telecommunications equipment manufacturer headquartered in Mississauga, Ontario, Canada. During and right after the optical boom years, Nortel allegedly used bill and hold transactions{{cite web| url = https://www.theglobeandmail.com/report-on-business/ex-nortel-ceo-john-roth-says-hes-cleared/article87339/| url-status = dead| archive-url = https://web.archive.org/web/20121107141144/http://www.theglobeandmail.com/report-on-business/ex-nortel-ceo-john-roth-says-hes-cleared/article87339/| archive-date = 2012-11-07| title = Ex-Nortel CEO John Roth says he's cleared - The Globe and Mail| website = The Globe and Mail}}
to inflate the company's revenues during some quarters, allowing company executives to earn millions in bonuses.
References
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Category:Accounting in the United States
Category:Accounting terminology
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