Called to Account: How CBS Radio created an accounting complication for CBS

Before CBS Corp. reported its earnings for the 2016 fourth quarter last week, the company reached out to analysts and reporters, including MarketWatch, to explain that some comparisons would be out of whack, notably revenue and bottom-line earnings.

This piqued MarketWatch’s interest.

In its earnings release, CBS CBS, -0.50% presented its CBS Radio business as a discontinued operation. The company had officially announced the business would merge with Entercom Communications Inc. on Feb. 2, after the reporting period ending Dec. 31, but before fourth-quarter and full-year results were filed with the Securities and Exchange Commission.

When CBS chose to categorize CBS Radio as a discontinued operation it, for all intents and purposes, pushed the business to the side, as something that would not be considered going forward.

>>> Original Source <<<