Office Depot said it would delay the release of its third-quarter earnings because of an issue involving the recognition of vendor program funds.
In a brief statement, the office products retailer said, "The delay is due to an independent review by the audit committee of the company's vendor program funds. The review relates principally to the timing of the recognition of certain vendor program funds."
Vendors often receive funds from suppliers if they meet certain sales or marketing goals, but if the revenue is recognized in the quarter before it is actually received, that can cause problems. Vendor accounting problems have also tripped up other retailers lately, including Saks and Rite Aid.
Office Depot has not yet scheduled a new date and time for distributing the earnings information.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access