Lowe's Companies Inc.: Restatement of Financial Statements

Lowe?s Companies Inc. is a home improvement retailer ghostlike offering home 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 just a small ironware store offering a wide variety of mental synthesis 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 build and enhance their home. In 2006, Lowe?s had to get laid a restatement of their 2005 annual report. In February of 2006, the focusing of Lowe?s fixed to change their method of accountancy dodging for recognizing discounts on merchandise payments air early. Prior to this change, Lowe?s know these early payment discounts by reducing the cost of sales when the product was purchased. Now, management has pertinacious to recognize the discounts as a reduction in list, whence 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 thorough assets, retained earnings, functionholder?s equity, cost of goods sold, gross margin, along with different accounts. Since realizing these differences, Lowe?s decided to go substantiate to their prior year?s monetary statements and restate them while modifying them in compliancy to their new accounting method. Another reason that Lowe?s has issued this restatement is to dress the common stock amounts. In May of 2006, the board of directors canonical 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 Emerging egresss Task Force of FASB has released Issue number 02-16, bill by a Customer for real Cash setting Rec eived... ! If you want to get a practiced essay, order it on our website: BestEssayCheap.com

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