The Financial Reporting Council (FRC) is to investigate several years' worth of Tesco financial statements following the revelation the supermarket overstated profits earlier this year.
The accounting regulator said today it will examine the preparation, approval, and audit of Tesco financial statements for the financial years ending February 2012, 2013, and 2014. It will also investigate Tesco’s conduct in relation to the £263m interim profit overstatement first disclosed in September of this year. The body has the power to force a company to restate results and impose other sanctions. Tesco shares slumped as a result of the announcement, bringing to an end their recent rally off a decade-low. The stock was down 2% to 181.6p by mid-morning and is 46% lower year ...
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