NEW ACCOUNTING RULE IMPACTS COSTCO

ISSAQUAH, Wash. -- Costco Wholesale Corp. here said a new accounting rule would reduce its sales by about $400 million during the next 12 months, although net income will not be affected.The new rule requires that vendor payments made to a retailer to subsidize a discount for consumers -- such as a retailer-specific coupon -- be subtracted from the cost of goods sold. The rule, EITF 03-10, was created

ISSAQUAH, Wash. -- Costco Wholesale Corp. here said a new accounting rule would reduce its sales by about $400 million during the next 12 months, although net income will not be affected.

The new rule requires that vendor payments made to a retailer to subsidize a discount for consumers -- such as a retailer-specific coupon -- be subtracted from the cost of goods sold. The rule, EITF 03-10, was created by the Financial Accounting Standards Board's Emerging Issues Task Force as a follo

Register to view the full article