Sharechat Logo

The Warehouse shows how to dial up a bigger profit

Friday 14th July 2000

Text too small?

Listed retailer The Warehouse boosted its recent half-yearly profit by using a clever accounting manoeuvre in the treatment of the losses on pre-pay mobile phones.

It treated losses on mobile phones as assets, adding an extra $6.6 million to its profit.

The chain's profit in the six months to January 31 was up $11.3 million, or 31% on the corresponding six months of the previous year, but if the canny mobile phone treatment had not been used, profits would have been up only 12%.

Accountancy lecturer Alan Robb said the justification for treating trading losses as assets was questionable.

Full article

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar bounces off four-year low; seen weaker
Vector urges regulatory change in low-interest-rate environment
Vector urges regulatory change in low-interest-rate environment
Govt moves against surprise Supreme Court 'black hole' tax ruling
Qantas CFO Race Strauss to join A2 Milk as CFO
Climate Committee seeks data, evidence for future carbon budgets
Spark's wobbly world cup start raises stakes for live-streaming - analysts
An algorithm dunnit: anatomy of Spark's mid-match surrender
Stanley-Tallwood liquidator cuts deal over KiwiBuild development
Stanley-Tallwood liquidator cuts deal over KiwiBuild development

IRG See IRG research reports