The Securities and Exchange Commission is looking into an accounting practice that has led to large writedowns at several specialty finance companies, say top executives at companies in the sector.

The Big Six accounting firms recently received questionnaires from the securities regulator about the practice of gain-on-sale accounting, which allows companies to book profits before they are received, the executives said.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.