Is Nash Finch in an Accounting Pinch?
By George Anderson
The Securities and Exchange Commission (SEC) is conducting an informal inquiry into how Nash Finch accounts for promotional allowances and returnables, says the grocery wholesaler.
The SEC is beginning to look more closely at publicly traded retailers and wholesalers to determine if these companies are properly accounting for slotting allowances and other forms of vendor payment, says today’s Wall Street Journal.
The laxity of rules for retailers’ accounting of vendor allowances has created a situation that Gary Giblen, director of research, C.L. King calls, “The Wild West of corporate accounting.”
Moderator’s Comment: Is “Wild West” accounting deceiving
the stakeholders of retail and wholesale companies? Should retailers change
how they account for vendor allowances? [George
Anderson – Moderator]
Finch Faces SEC Probe Of Allowances From Vendors – The Wall Street Journal