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EBay Finds ‘Material Weakness’ in Controls Over Accounting for Tax

February 6, 2017

The eBay Inc. Campus Ahead Of Earnings FiguresThe eBay Inc. Campus Ahead Of Earnings Figures

 

EBay said on Monday it had identified a deficiency in the effectiveness of a control related to its tax accounting, which constituted a material weakness.

However, eBay said it would not have to restate financial results for any prior period due to the issue, which impacted the deferred tax asset and income tax benefit accounts.

The company said it plans to implement certain reviews and documentation standards by the first quarter, and expects to remedy the issue by the end of this year.

Correction: An earlier version of this story incorrectly stated that eBay had improperly accounted for tax on certain transactions completed in December. The company identified a deficiency in the effectiveness of a control related to its tax accounting.