Sunday 17 April 2016

Target In Strife Over Accounting Methods

Key retailer, Target, is under the spotlight after Wesfarmers announced it was investigating accounting methods used in the first half business report.

It is suspected that Target inflated its earnings for the first half of 2015/16 by negotiating supplier rebate deals. Apparently suppliers gave rebates on goods with the understanding they would be recouped with higher prices later in the year.

It is believed that new boss Guy Russo uncovered the scheme shortly after taking office in March. Target’s Managing Director has decided to resign.