A&P Investigates Its Vendor Allowances Practices
A&P’s investigation into its accounting practices in certain regions related to “the appropriate timing for vendor allowances and the accounting for inventory,” has caused the company to delay filing its 10-K annual report with the Securities & Exchange Commission, scheduled for May 24.
The company says it believes that a charge will result from its investigation, due to a significant change in its financial results for the fiscal year ended Febrary 23. Much of the charge is expected to reverse credits from vendors that were recognized prematurely, according to A&P.
Moderator Comment: Do you think that A&P’s announcement
signals real problems or is it just a precaution to avoid the appearance of
having cooked the books? [George
Anderson – Moderator]