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Calling All FASB Comments

BY Katherine Boccaccio

In the November issue of Chain Store Age (page 28), leasing specialist Bill Bosco discussed what is being called the biggest threat to retailers’ earnings: the Financial Accounting Standards Board’s (FASB) proposed new rules for lease accounting.

According to Bosco and other experts, the new rules will essentially turn operating leases into capital leases for accounting purposes, wreaking havoc on retailers’ bottom lines.

As an example, for Walgreens, which operates more than 8,000 locations, the potential impact of the new rule could increase the cumulative lease cost on its balance sheet by $2.6 billion or more. Pre-tax earnings could drop by 50% in the first year under the proposed rule change.

The rules are nothing more than a proposal at this point. Changes can still be made, but only if retailers become vocal. It is critical, urges Bosco, for all retailers to become informed about the proposed changes and then to send in comments to FASB. The deadline to write a comment letter to FASB is Dec. 15, 2010.

Click here for a link to comment letter guidelines.

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S.Wong says:
Dec-21-2013 07:16 am

Printing is a process for reproducing text and images, typically with ink on paper using a printing press. It is often carried out as a large-scale industrial process, and is an essential part of publishing and transaction printing. Toronto Printing | Calgary Printing | Edmonton Printing | Winnipeg Printing | Ottawa Printing

S.Wong says:
Dec-21-2013 07:16 am

Printing is a process for reproducing text and images, typically with ink on paper using a printing press. It is often carried out as a large-scale industrial process, and is an essential part of publishing and transaction printing. Toronto Printing | Calgary Printing | Edmonton Printing | Winnipeg Printing | Ottawa Printing

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Nordstrom names new directors

BY CSA STAFF

SEATTLE Nordstrom announced the appointment of Felicia Thornton and Kevin Turner to the company’s board of directors.

Thornton is CEO, U.S., Knowledge Universe, a global education company based in Portland, Ore.  Turner is COO of Microsoft.

“Felicia and Kevin bring significant experience and expertise covering retail, technology, finance, strategy and industry best practices,” said Enrique Hernandez, Jr., chairman of the board of directors for Nordstrom Inc.  “Their addition will further strengthen our Board’s ability to govern to the highest standards.”

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Gap makes South American debut

BY CSA STAFF

SAN FRANCISCO Gap Inc. announced a franchise agreement to introduce Gap brand in South America. The first Gap store is expected to open in Santiago, Chile in the Parque Arauco mall in September 2011.

Gap Inc. has signed a franchise agreement with Komax, for exclusive rights to operate Gap brand stores in Chile.

“We are looking forward to offering Gap’s modern, cool American designs to customers in a retail sector that is strong, and has an exceptional demand for fashion,” said Stephen Sunnucks, president Gap Inc., Europe and strategic alliances. “Komax has impressed us with their local expertise in the market and proven track record of launching international brands to customers in Chile.”

The company projects that by fiscal 2013, international and online sales will account for more than a quarter of its total net sales.

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