Lowe's Companies Inc.: Restatement of Financial Statements

Lowe?s Companies Inc. is a home improvement retailer religious 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 divisions, Lowe?s was just a small computer hardware store offering a wide variety of expression materials, appliances and hardware. through with(predicate) the years, sales 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 counsel of Lowe?s fixed to change their method of accountancy placement for recognizing discounts on merchandise payments air early. Prior to this change, Lowe?s recognise these early payment discounts by reducing the cost of sales when the product was purchased. Now, managem ent has pertinacious to recognize the discounts as a simplification 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 intact assets, retained earnings, functionholder?s equity, cost of goods sold, gross margin, along with some other 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 prize to their new accounting method. Another reason that Lowe?s has issued this restatement is to chastise the common stock amounts. In May of 2006, the board of directors approve 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 outs Task Force of FASB has released Issue number 02-16, bill by a Customer for trusted Cash setting Received... If you wa! nt to get a undecomposed essay, order it on our website: OrderEssay.net

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