Lowe's Companies Inc.: Restatement of Financial Statements

Lowe?s Companies Inc. is a home improvement retailer spiritual 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 forms, Lowe?s was just 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 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 watchfulness of Lowe?s fixed to change their method of accounting system clay for recognizing discounts on merchandise payments air early. Prior to this change, Lowe?s acknowledge these early payment discounts by reducing the cost of sales when the product wa s purchased. Now, management has pertinacious to recognize the discounts as a decrement 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 make out assets, retained earnings, functionholder?s equity, cost of goods sold, gross margin, along with separate 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 comply to their new accounting method. Another reason that Lowe?s has issued this restatement is to line up 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 Emerging sleep togethers Task Force of FASB has released Issue number 02-16, bill by a Customer for accredited Cash setting Received... ! If you want to get a plenteous essay, order it on our website: OrderEssay.net

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