Rvplus, Inc. (fka RVPL)

[TenKay]

Then he has a number of choices...none of which he chose to use.

1) he could not show the AR as an asset..but then it would not have been an AR.
2) he could have an offsetting liability that offsets the A/R. For example he could assume it is a bad debt and have a liability against what is a "questionable" asset. In other words he just has to admit that it is not a real asset at this point.
3) according to HIS OWN revenue recognition policy is HIS OWN 10Q he can recognize those invoice soft costs as revenue. But he did not. In my view for a reason...as that would have run those invoices through the entire set of financials.

To anyone who understands this basic accounting issue understands he was playing a game. He wanted people to believe that "asset" was real. But there are a bunch of reasons to believe it is not.

1) how he dealt with it on the balance sheet
2) the fact that he has made a choice to NOT show it as revenue assuming he is actually applying his own revenue recognition policy
3) the fact that ALL of these invoices are referred to in the 8K's as PRO FORMA invoices. Those are NOT real invoices. He is hoping that some skip over the "pro forma" designation....or don't understand what it means.

And finally the SEC's suspension points specifically at the A/R as an issue.

It really could not be more obvious.