Performance Sports Group Channel Stuffing

Saturday, November 16, 2019 10:54:27 AM

Please log in to bookmark this story. After seeing little activity for most of the day, PSG shares began to surge just after p. It was the same story in the United States, with the shares rallying Story continues below advertisement The price jump happened on heavy volume. From the market open at a.

Channel stuffing financial definition of channel stuffing

Also found in: Wikipedia. Channel Stuffing An illegal practice in which a company willfully sells more of its product to distributors than the distributors can sell to customers.

The company makes these sales on credit , which temporarily boosts its accounts receivable and by extension its current assets.

Bauer Hockey accused of fraud, channel stuffing

This makes the company look healthier than it really is which can raise its stock price. Eventually, when the distributors are unable to sell the product they return it to the company instead of paying, which reduces the accounts receivable and brings the company's balance sheet in line with reality.

  • Performance Sports Group Ltd.
  • Originally posted by Rastlet View Post Why would you think they would be interested in telling you anything?
  • Read the first here. On Jan.
  • Last updated: June 5th, What is Channel Stuffing? Channel stuffing is an improper revenue recognition practice in which a company fraudulently inflates its sales and earnings by sending excessive amounts of products to its distributors ahead of demand.

For example, an appliance manufacturer may inflate revenues and earnings in the current accounting period by shipping to retail stores more refrigerators, stoves, and dishwashers than the stores are likely to sell.

The practice of channel stuffing borrows revenues and earnings from the future because overstocked customers will reduce orders in future periods.

Australian Financial Review

Want to thank TFD for its existence? Tell a friend about us , add a link to this page, or visit the webmaster's page for free fun content. Link to this page:.

Owner of Bauer hockey accused of fraud and trying to “deceive the market”

Your email will not be published.. Required fields are marked *

Copyright © 2019