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Serious Fraud Office plans Tesco criminal investigation | Serious Fraud Office plans Tesco criminal investigation |
(35 minutes later) | |
The Serious Fraud Office (SFO) is carrying out a criminal investigation into accounting irregularities at supermarket giant Tesco. | |
Tesco says it has been "cooperating fully" with the SFO. | |
Last week, the supermarket announced that its profits had been overstated by £263m, up from an initial estimate, made last month, of £250m. | |
The new probe means a investigation by Financial Conduct Authority will be ended, Tesco said. | |
The SFO confirmed the probe, but declined to give further details. | |
The accountancy firm Deloitte last week completed its investigation into Tesco's misreported profits. | The accountancy firm Deloitte last week completed its investigation into Tesco's misreported profits. |
It found that they were overstated by £118m in the first half of this year, by £70m in the 2013-2014 financial year and by £75m before that. | It found that they were overstated by £118m in the first half of this year, by £70m in the 2013-2014 financial year and by £75m before that. |
Suspended executives | |
The UK accountancy regulator, the Financial Reporting Council, is also monitoring Tesco. | |
The supermarket giant's shares have lost more than half their value in the last 12 months, tumbling from 369.10 pence. | |
Tesco rose 2.3% today to 173.7 pence, while the FTSE 100 advanced 1%. | |
Tesco had been doing deals with suppliers over promotions, which is commonplace for supermarkets. | Tesco had been doing deals with suppliers over promotions, which is commonplace for supermarkets. |
But it appears Tesco had been booking returns from those promotions too early, while pushing back the costs. | But it appears Tesco had been booking returns from those promotions too early, while pushing back the costs. |
Eight executives have been suspended since that practice was revealed. | Eight executives have been suspended since that practice was revealed. |
Tesco has said there was no evidence of personal gain from the mis-statement. | Tesco has said there was no evidence of personal gain from the mis-statement. |