Tesco in turmoil as chairman exits amid accounting scandal

clock

Tesco has scrapped its full-year trading update and its chairman is to step down as it deals with the fallout from the accounting scandal which left a £263m black hole in its balance sheet.

Tesco said a Deloitte review into the accounting error found there had been 'similar practices in prior reporting periods'. Revising upwards the scale of the accounting mistake from £250m to £263m, Tesco said profits were overstated by £118m in the first half of this year, by £70m in the 2013-2014 financial year and by £75m before that. Tesco said the Deloitte review confirmed that: ·      our overall commercial income adjustment in the current reporting period of £263m is reasonable; ·      amounts have been pulled forward or deferred, contrary to Tesco Group accounting policies; ·  ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Chaos is not a ladder: Navigating human behaviour at times of market stress

Chaos is not a ladder: Navigating human behaviour at times of market stress

'It is important to maintain perspective'

Sacha Chorley
clock 09 March 2026 • 4 min read
Four reasons why direct engagement can still make a difference

Four reasons why direct engagement can still make a difference

'Quantitative data arguably tells only half the story'

Simon Wood
clock 05 March 2026 • 4 min read
Darius McDermott: Is income under pressure?

Darius McDermott: Is income under pressure?

‘The period of abundant income is ebbing'

Darius McDermott
clock 04 March 2026 • 5 min read