Tesco in turmoil as chairman exits amid accounting scandal

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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; ·  ...

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