Super Electronics Case - AC611 Fall 2010

Super Electronics Case - AC611 Fall 2010 - Super...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Super Electronics, Inc.: Financial Reporting of Sales Incentives and Vendor Allowances using FASB Codification 1 Abstract Super Electronics, Inc., a specialty retailer, has recently initiated several sales incentives and has entered into a long term purchase arrangement that entitles it to sliding discounts depending on the level of purchases. Using FASB Accounting Standards Codification, you are to determine whether the Company’s existing policies comply with Generally Accepted Accounting Principles (GAAP). You are also required to evaluate the soundness of the proposals that SE’s management has made during the process of annual audit and explore plausible motivations behind them. The case provides an opportunity to examine several technical and conceptual accounting issues in a real-world setting, strengthen accounting research capabilities, understand implications of the choice of an accounting policy for performance measurement and for financial statement analysis, and develop advanced critical thinking and professional judgment skills. Case Company Overview Super Electronics, Inc. (SE or the Company) is a regional specialty retailer of consumer electronics, home office products, entertainment software, appliances and related services. The Company is committed to the goals of growth and innovation ever since its incorporation in 1990. It was amongst the first few large retailers to sell emerging electronics items to the mass market. SE provides extensive training about the new products to its sales associates so that they can make it easier even for the least technologically-savvy customer to try newer electronic gadgets. In the last decade, the Company has focused not only on increasing the sales of the electronic products but also on capturing a significant share of the electronics installation market, servicing products purchased at SE as well as other stores. The Company’s reputation for large attractive stores, technical assistance for product selection, and expert installation and repair services has enabled it to achieve double-digit growth in revenues and number of stores over the last several 1 This case was developed by Professor Mahendra Gujarathi of Bentley University as the basis for class discussion.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 years. In 1999, SE launched the electronic commerce site that offers the full range of the Company’s in-store products. Performance Compared to other firms in the specialty retailing industry, the Company has demonstrated above-average growth in sales and gross margins in the last decade. The Company’s management is optimistic that this trend will continue for the foreseeable future. In fiscal 2008 2 , SE reported the highest comparable stores sales growth 3 in the specialty electronics industry. However, preliminary results for the fiscal year 2008 (ending on 2/29/2009) indicate that the
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/02/2011 for the course AC 611 taught by Professor Keating during the Spring '11 term at Bentley.

Page1 / 12

Super Electronics Case - AC611 Fall 2010 - Super...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online