Module I· Revenue Recognition (IFRS 15)Advanced
Question
What are channel stuffing and pull-forward sales, and how do you identify them?
Answer
Channel stuffing and pull-forward sales accelerate revenue without true demand. Key signs are period-end spikes, weak subsequent periods, rising DSO, returns, and discounting.
Deep diveShow more details
In QoE, normalize EBITDA for unsustainable pull-forward revenue and margin impact. Ask for distributor inventory and post-period sales data.