By George Anderson
The Securities and Exchange Commission (SEC) has asked Kroger and Albertsons to provide it with information on how the companies account for vendor payments.
According to Reuters, Kroger said "it believed the review was part of regular SEC activities mandated by the Sarbanes-Oxley Act, which aims to curb accounting irregularities."
Moderator's Comment: Do grocery industry accounting methods need to be overhauled?
Beyond the vendor payment issue, a RetailWire member recently asked us to pose the following question. With the ability today to track units not just dollars, why do companies continue to cling to an outdated method of inventory tracking and all the complexities that come with retail accounting? [George Anderson - Moderator]