Accenture (ACN), a management and consulting firm, has disclosed what it calls an “misclassification” in its most recently filed annual report. The company understated net assets in its North America and Growth Market segments while significantly overstating its European assets.

Rather than allocating total company assets by segment, Accenture defines the assets in question as receivables and current and non-current contract assets, deferred contract costs and current and non-current deferred revenues.

In adjusting its segment assets in its latest quarterly filing, Accenture:

—Added $1.28 billion to its North America segment, or 69.1%
—Added $14 million to its Growth Market segment, or 1.6%
—Subtracted $1.29 billion from its European segment, or 45.1%

Accenture calls the mistakes immaterial.

The company doesn’t plan to restate segment asset values in the previously released annual report and says there was no effect on total net assets.

In October 2021, we revealed Accenture uses an accounting loophole to exclude $282 million in lease liabilities from its balance sheet. Our analysis indicates Accenture is understating the NPV of its future operating lease obligations by approximately 5.8% and its total liabilities by 1.2%