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  "documentTitle": "WD-40 Company (WDFC)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2020-04-02 00:00:00",
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  "notes": "The slide uses a table to show the trend of rising discounts relative to gross sales, culminating in a highlighted 5.7% figure.",
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      "kind": "callout",
      "text": "Rebates Added As “Critical Audit Matter”",
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      "text": "The disclosure may have been pushed by the auditor, which recently added rebates and marketing program accruals as a \"Critical Audit Matter\".",
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      "text": "Total Discounts / Gross Sales: 5.7%",
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      "text": "WD-40 recently started disclosing reductions to sales for rebates, coupons and cash incentives. The disclosure may have been pushed by the auditor, which recently added rebates and marketing program accruals as a “Critical Audit Matter”. By closely analyzing recent trends, we find that WD-40 gave its largest incentives in Q1 2020. This is supported by our channel checks which show greater in-store promotion.",
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      "text": "The principal considerations for our determination that performing procedures relating to the cooperative marketing program accruals is a critical audit matter are (i) there was significant judgment by management to estimate the cooperative marketing program accruals, which in turn led to a high degree of auditor judgment in performing procedures to evaluate the status of trade promotion activities within the cooperative marketing program accruals, and (ii) there was a high level of audit effort and subjectivity in performing procedures to evaluate the current and past trade promotion spending patterns and the status of trade promotion activities used to determine the cooperative marketing program accruals.",
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      "text": "\"The principal considerations for our determination that performing procedures relating to the cooperative marketing program accruals is a critical audit matter are (i) there was significant judgment by management to estimate the cooperative marketing program accruals, which in turn led to a high degree of auditor judgment in performing procedures to evaluate the status of trade promotion activities within the cooperative marketing program accruals, and (ii) there was a high level of audit effort and subjectivity in performing procedures to evaluate the current and past trade promotion spending patterns and the status of trade promotion activities used to determine the cooperative marketing program accruals.\" — Company filings",
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      "text": "Source: Company filings",
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      "text": "Table showing Rebates, Coupons, Cash Discounts, Total Sales Discounts, Net Sales, Gross Sales, and Total Discounts / Gross Sales across 5 quarters.",
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