Lowe's Companies Inc.: Restatement of Financial Statements

Lowe?s Companies Inc. is a base value retailer spectral offering cornerstone improvement products and services. With over 1,200 strains in 49 states, Lowe?s is the second largest home improvement retailer followed by hearthstone Depot. Lowe?s was founded in 1946 in North Carolina. In its primordial course of instructions, Lowe?s was middling a small computer hardware store offering a wide variety of grammatical construction materials, appliances and hardware. through with(predicate) the years, gross revenue grew and Lowes began to expand. Currently, Lowes offers thousands of products to customers to trope and enhance their home. In 2006, Lowe?s had to get laid a replicatement of their 2005 annual report. In February of 2006, the vigilance of Lowe?s fixed to castrate their method of accountancy outline for recognizing discounts on merchandise payments charge early. Prior to this change, Lowe?s recognised these early payment discounts by reducing the court of sales when the product was purchased. Now, management has unyielding to recognize the discounts as a reduction in list, thence as a reduction of cost of sales when the inventory is sold. By switching to this accounting method, Lowe?s has realized a reduction in their essence assets, retained earnings, functionholder?s equity, cost of goods sold, gross margin, along with otherwise accounts.

Since realizing these differences, Lowe?s decided to go substantiate to their previous year?s monetary statements and restate them while modifying them in value to their new accounting method. some other reason that Lowe?s has issued this restatement is to determine the common stock amounts. In May of 2006, the board of directors okay a 2 for 1 stock split. To account for this split, Lowe?s had gone back to prior years statements and made adjustments to in their common share amounts. Recently, the uphill shortens Task Force of FASB has released Issue number 02-16, bill by a Customer for definite Cash setting Received... If you motivation to get a total essay, order it on our website: Orderessay

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