24th Sep 2014 10:50
LONDON (Alliance News) - The Financial Reporting Council said Wednesday it is "closely" monitoring the situation at Tesco PLC following the supermarket group's announcement earlier this week that it had overstated its profit guidance by GBP250 million.
Tesco shares dropped 11% on Monday after the group said it had overstated its first half profit guidance by GBP250 million and said it has suspended four executives while it undertakes an internal investigation into the issue.
The British accounting standards watchdog said it would consider the outcome of Tesco's investigation before determining whether it will have to take regulatory action.
The FRC's statement comes after a report in The Times on Wednesday that the UK's Serious Fraud Office is understood to be closely following events at Tesco following the profit overstatement announcement.
Tesco shares were down 0.3% on Wednesday to 194.02 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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