Home / Knowledge / News / Fashion / Hart Stores to improve controls over inventory valuation process
Hart Stores to improve controls over inventory valuation process
10
Apr '08
Hart Stores Inc announced that it has undertaken a special review of inventory for fiscal 2008 and prior years while in the process of assessing the implementation of the new CICA Section 3031-Inventories.

Based on the findings of the review, the management has concluded that inventory was overstated in fiscal 2007 and prior years.

The impact is that fiscal 2007 year end inventory is overstated by $2.7 million. The impact for fiscal 2007 on net income is an overstatement of $0.3 million.

The restatement to fiscal 2007 and prior years will generate a tax recovery of approximately $0.9 million and an overstatement of retained earnings of $1.8 million at the end of fiscal 2007.

It will not have any impact on the cash balances. Prior to the restatement, fiscal 2007 closing inventory was $45.0 million and net earnings were $4.4 million.

These restatements are required as a result of the findings of the Company's valuation process regarding inventory, more precisely the accounting application of certain consideration received from vendors.

The management is reviewing the circumstances which resulted in the inventory overstatement and is taking steps to improve controls over inventory valuation process.

Hart Stores' Board of Directors, on the recommendation of management, has concluded that it is necessary to restate the Company's audited consolidated financial statements for each of the prior years affected.

The Company is currently working to finalize and file its restated financial statements for fiscal 2007 and they will be available when it releases its 2008 financial statements later in the up coming weeks.


Must ReadView All

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Kenya levies higher duties on mitumba import

Apparel/Garments | On 18th Jun 2018

Kenya levies higher duties on mitumba import

Kenya’s treasury secretary Henry Rotich recently raised the duty on...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search