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Article: BJ's Wholesale Club, Inc. Will Adopt New Methods to Account for Membership Income and Store Preopening Expenses.
- Article from:
- Business Wire
- Article date:
- October 19, 1998
CopyrightCOPYRIGHT 1998 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NATICK, Mass.--(BUSINESS WIRE)--Oct. 19, 1998--BJ's Wholesale Club, Inc. (NYSE:BJ) today announced that it will adopt a new method of accounting for membership income in anticipation of changes the Securities and Exchange Commission (SEC) is expected to require the wholesale club industry to adopt later this year. The company will also implement early adoption of the American Institute of CPA's Statement of Position (SOP) 98-5, "Reporting on the Costs of Start-up Activities," in the current quarter.
ACCOUNTING FOR MEMBERSHIP FEES
Historically, BJ's has recognized annual membership fees as revenue when received; that is, on a cash basis. Under its new ...