Disclosure Analysis Paper
ACC/422
December 3, 2012

Disclosure Analysis Paper
Best Buy Co. Inc. is a publicly traded company. Best Buy is a multinational retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances and related services. Best Buy Co operates retail stores and call centers and conduct online retail operations under a variety of brand names such as Best Buy (BestBuy.com, BestBuy.ca), Best Buy Mobile (BestBuyMobile.com), The Carphone Warehouse (CarphoneWarehouse.com), Five Star, Future Shop (FutureShop.ca), Geek Squad, Magnolia Audio Video, Pacific Sales and The Phone House (PhoneHouse.com). Best Buy Co. Inc. is a global corporation with domestic and international segments.
Inventory
Merchandise inventories are assigned cost of unsold units left on-hand (Kieso, Weygandt, Warfield, 2007). Merchandise inventories are recorded at the lower of cost using either the average cost or first-in first-out method, or market. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products. Other costs associated with acquiring, storing and transporting merchandise inventories to Best Buy retail stores are expensed as incurred and included in cost of goods sold. Over the past three years Best Buys merchandise inventory has reduced gradually each year. In February 2010 inventory was negative 609 million, in February 2011 it was negative 400 million, and as of March 2012 inventory was positive 120 million. Best Buy inventory valuation reflects adjustments for anticipated physical inventory losses (e.g., theft) that have occurred since the last physical inventory. Physical inventory