KB Home said the Securities and Exchange Commission is investigating the large hombuilder’s joint ventures, and the way it accounted for declining home and land prices, a probe that could have implications across the industry.
The Los Angeles company said it is cooperating with the SEC, and it is confident in its financial statements. The SEC declined to comment.
While it’s not clear what the SEC is questioning about land-related charges and joint ventures, the practices were widespread across the industry. In recent years, homebuilders wrote down billions of dollars in the value of land and housing inventory that depreciated, also known as taking impairments.
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