KMTW, international accounting reporting standards would not allow the disclosure of prepayments to inventory unless that inventory had actually been produced. If the inventory had been produced and held in a third party warehouse pending transit to BUD, then it would be classed as inventory. Once in transit it would be classified as such. Anything less and it would be classified as a prepayment.
Nothing would surprise me with these guys as the COO seems totally incompetent at managing and his accounting/reporting skills have been shown to be in the same category. Hopefully he is no longer employed by BUD.
I just hope BUD directors are taking their time to sort this mess out correctly and fully. Heads must roll if the company is to ever regain any credibility. Meanwhile the business will continue under inventory supply constraints. This should mean those that remain on the payroll responsible for this shambles should be wearing the cost with significant reductions in pay while the company struggles back to gain sales momentum.
In the meantime I sincerely hope BUD competitors are in a similar chip and finished goods supply constraint situation which will mean competitor product is not filling the supply void on retailer shelves due to BUD supply issues. I guess shareholders in BUD sales hot spots could readily answer this question.
BUD Price at posting:
4.3¢ Sentiment: Hold Disclosure: Held
