Wal-Mart used questionable accounting, sales practices in China: report
Wal-Mart Stores Inc.’s WMT, -0.69% retail business in China has been made to look better than it is, due to “questionable accounting and unauthorized sales practices,” Bloomberg News said in a report that published Wednesday. Citing internal documents and interviews with employees who left the company in the past month, Bloomberg said businesses were made to appear strong even amid a pileup of unsold inventory and slowing sales. Those sources said China’s Wal-Mart Stores have been under intense pressure to hit earnings targets and temporarily marked up inventory in one move to boost profit views, with any additional sales. Concerns about bulk sales were raised back in 2011, and even in May, Wal-Mart’s legal team was looking at the issue, according to Bloomberg sources. Wal-Mart didn’t immediately reply to an email seeking comments.
Source: MarketWatch – Wal-Mart used questionable accounting, sales practices in China: report
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