How retail accounting could distort profitability as tariffs take effect

As more tariffs take effect on goods imported into the U.S., a specific accounting method could have major implications for how American retailers calculate the impact.

A tariff adds to the cost of an imported item when it’s received and paid for when it crosses a border. While there’s debate over who pays that tariff — the manufacturer, the retailer, the consumer or some combination — the hit will likely show up in retailers’ bottom lines. READ MORE