Use the Internet to research recent articles on the channel stuffing practice used by a company to increase income by sending suppliers in the distribution channel more inventory than they are able to sell. Be prepared to discuss.
- From the e-Activity, evaluate the requirements under GAAP related to channel stuffing practices on financial statements. Recommend key additional requirements, and justify those requirements.
- From the e-Activity, examine the impact of channel stuffing on financial reports used for internal decision making. Create a scenario involving a faulty internal decision based on channel stuffing.