Mattel Cited for Unofficial Revenue Accounting Metrics

The Securities and Exchange Commission is making good on its warning that it will scrutinize companies using unofficial accounting metrics that make revenues look rosier than standard numbers convey.

The SEC in comment letters released Monday told Mattel Inc. to abstain from using the measure “gross sales” as a way to convey revenue because the number better reflected the toymaker’s bills to customers.

The company used the metric in the management’s discussion and analysis section of Mattel’s 2019 financial statement. The company said gross sales represented sales excluding adjustments like trade discounts. It also used the unofficial measure to ...