{"id":4447,"date":"2014-09-22T12:04:39","date_gmt":"2014-09-22T11:04:39","guid":{"rendered":"https:\/\/bigredcloud.com\/?p=4447"},"modified":"2022-04-01T16:27:37","modified_gmt":"2022-04-01T15:27:37","slug":"new-accounting-blunder-250m-profit-overstatement-tesco-uk","status":"publish","type":"post","link":"https:\/\/bigredcloud.com\/en\/new-accounting-blunder-250m-profit-overstatement-tesco-uk\/","title":{"rendered":"New Accounting Blunder With \u00a3250m Profit Overstatement At Tesco UK"},"content":{"rendered":"
\n

 <\/p>\n

When we published our Book of Accounting Blunders<\/a> last week we didn’t think we\u2019d have such a short wait for a new accounting blunder to come along, and Tesco\u2019s \u2018accelerated recognition of commercial income and delayed accrual of costs\u2019 is a big one.<\/p>\n

According to Dave Lewis, Group CEO<\/a>, \u201cWe have uncovered a serious issue and have responded accordingly.\u00a0 The Chairman and I have acted quickly to establish a comprehensive independent investigation. \u00a0The Board, my colleagues, our customers and I expect Tesco to operate with integrity and transparency and we will take decisive action as the results of the investigation become clear.\u201d<\/p>\n

The \u00a3250 million overstatement of profits is startling as it represents roughly a quarter of Tesco\u2019s UK profits which in turn means that the \u2018accelerated recognition of commercial income and delayed accrual of costs\u2019 or deducting monies from suppliers\u2019 trading accounts or extending payment dates without notice was not isolated but widespread across the UK.<\/p>\n

Lewis has suspended four senior members while Deloitte and law firm Freshfields have begun a detailed investigation. The full extent of what Tesco UK got up to with its suppliers is not clear but there are reports that it was not illegal, just typical buyer-supplier shenanigans.<\/p>\n

That being said, the City of London financial community has taken a different view and Tesco stock is down 10pc and 40pc year-to-date.<\/p>\n

The magnitude of this accounting blunder will become clear on October 23 as Tesco has delayed the publication of its interim results until then.<\/p>\n

Check out our Book of Accounting Blunders here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

  When we published our Book of Accounting Blunders last week we didn’t think we\u2019d have such a short wait…<\/p>\n","protected":false},"author":6,"featured_media":8861,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[64],"tags":[],"class_list":{"0":"post-4447","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"\nTesco overstate profits by \u00a3250 million in latest accounting blunder<\/title>\n<meta name=\"description\" content=\"Tesco overstate profits by \u00a3250 million in latest accounting blunder - find out more in this blog.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bigredcloud.com\/en\/new-accounting-blunder-250m-profit-overstatement-tesco-uk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Accounting Blunder With \u00a3250m Profit Overstatement At Tesco UK\" \/>\n<meta property=\"og:description\" content=\"Tesco overstate profits by \u00a3250 million in latest accounting blunder - 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