aimenathan_discussionpost4 - of the company These errors...

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Subject: Inventory Error Posted by Nathan Aime Mon Jul 19 21:35:41 2010. Message: Ace Hardware said it discovered a $154 million accounting discrepancy between its general ledger and its actual inventory¸ which will force it to restate prior results and put its plans to go public on hold. The cause of the error is still unknown. The retailer-owned cooperative, with 4,600 hardware, home center and building materials stores said the error appears to have accumulated over at least five years. Posted by Nathan Aime Fri Jul 23 13:53:42 2010. Message: The effect of the inventory error on financial statements is detrimental to the long term stability
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Unformatted text preview: of the company. These errors impact FIFO and LIFO by not being able to correctly see what the costs should have been and ends up having to be a guessing game. Posted by Nathan Aime Fri Jul 23 14:01:50 2010. Message: I do not feel that this is an accounting error. I would say it is just a bad choice of whomever is doing the hiring process for the security managers. Or perhaps they should set up security cameras and take harsher actions on the thefts. Of course it definately affects the bottom line and reduces profits, but it doesn't seem like the accountant is to blame....
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