Financial Restatement

Burling gross ton Coat grind opened its doors in 1972 specializing mainly on coats in Burlington, New Jersey. Over the years, the company evolved in switch mens and womens suits, sportswear, shoes, and accessories (Burlington, 2009). The company now has everywhere 394 stores in 44 states. Burlington Coat Factory also owns violate Depot, Luxury Linens and Cohoes. On April 5, 2005, Burlington Coat Factory announced that its pecuniary statements need restatement due to certain operating lease fit matters (Burlington, 2005). Based on review from its accounting firm and audit, the bon ton decided to revise its method of accounting for operating leases (Burlington, 2005). The leases that be possessed of renewal options only, the Company recorded rent outlay on a straight-line hind end over the fixed sign name, with the term commencing when rental payments actually began, and computed depreciation/amortization on the link up leasehold improvements and other long-lived a ssets located on these properties over their helpful lives (Burlington, 2005). The Company decided to revise this role of method to recognised rent expenses on a straight-line basis over the pass judgment lease term, including holidays (Burlington, 2005). These results give non affect historical or future cash flows or timing of payment nether pertinent leases. The Company has also decided to revise the instruction it accounts for lease incentives. Lease incentives accredited from the lesser for the reimbursement of costs of leasehold improvements were webby against the incurred capital expenditures. By revise the financial statement, the accounting will record the lease incentives as deferred rent and amortize them over the length of the lease. Burlington Coat Factory will revise its yearly reports, forms 10-K and forms 10-Q, with the Securities and Exchange Commission (SEC) to take a hop the restated financial statements.If you want to consume a full essay, prep are it on our website: BestEssayCheap.com

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