Posted by up41 > 2014-12-10 20:30 | Report Abuse

One of the biggest accounting problem for retailer is stock figures. Is the stock figures provide for stock loss/pilferage ? If provision is made there are rooms for "adjustment" but if no provision is made then before a stock count is carried out , the profit for the store/outlet are just book profit. Of course for company with so many stores, there will be rotation of stock count and how often the count are done have direct impact on the stock pilferage figures. There is quite a big jump in inventory against the increase in sales. Interesting. It seems no analyst had asked the question of % of pilferage .