24th Oct 2014 12:02
LONDON (Alliance News) - The Financial Reporting Council Friday said it is studying the interim results statement released by Tesco PLC this week and is continuing to gather information in order to decide whether it will take any regulatory action over the supermarket's accounting problems.
The FRC, the accounting watchdog, said it will continue gathering information to determine if any regulatory action will be required. The regulator said in September it was "closely" monitoring the situation at Tesco after the FTSE 100 company said it had overstated its profit guidance for the first half by GBP250 million.
On Thursday, Tesco said accountancy Deloitte had completed an investigation into the overstatement of its profit guidance and confirmed a total impact of GBP263 million, more than Tesco had originally announced. The report said around GBP118 million related to Tesco's first-half trading profit, with GBP70 million for the prior financial year and GBP75 million for the year before that.
Tesco shares were among the worst performers on the FTSE 100 again on Friday, having fallen 6.6% on the back of its results announcement on Thursday. Shares in the group were down 1.1% to 169.2 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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