FCA investigates Tesco
Tesco has announced that the Financial Conduct Authority has commenced a full investigation following the overstatement of the group’s expected profit for the half year.
Deloitte is already undertaking an independent review of the supermarket’s books, with Tesco having suggested that its problems are the result of the accelerated recognition of commercial income and the delayed accrual of costs. A combination of the two resulted in profits for the six months to 23rd August 2014 being overstated by an estimated £250 million.
Analysts point out that Tesco looks set to me mired in regulatory and accounting problems in the run up to the crucial Christmas trading season.