The Warehouse shows how to dial up a bigger profit

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

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.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

RBNZ review seeks wider input on quantitative easing, bank supervision
NZ dollar rises on strong domestic exports, Trump comments on Powell
Goldsmith replaces Adams as Nat's shadow finance minister
Gold Report 25th June 2019
OECD joins KiwiBuild critics as 'reset' looms
Global trade crisis 'bad news' for open economies like NZ - OECD
Milk testing firm GEA Milfos to pay $925k for fixing prices
Dairy sales push May exports to record high
Pay rises lift employment confidence; outlook weak
Sky TV drops 'puck' deployment