Dick Smith Accused of Inflating Earnings to Meet Performance Expectations

Dick Smith’s top brass have been accused of deliberately buying too much stock to inflate earnings by booking supplier rebates as profits, while using commercial sales to cover up weak in-store performance.
Lawyers for Dick Smith’s receivers and bankers have sent letters to the defunct retailer’s former directors and managers alleging a series of "wrongful acts" that contributed to its collapse in January, according to The Australian Financial Review. Sydney Morning Herald – Read more…