Monday, September 22, 2014

Tesco Error Triggers New Profit Warning - WSJ

Investor beware. Accounting, despite all it does wonderfully, is never perfect and whether fraud or user error induced, there can be painful missteps for all of us who rely on the accounting system.

Tesco Error Triggers New Profit Warning - WSJ:

"Tesco's newly installed chief executive, Dave Lewis, said on Monday that the company has uncovered a "serious" accounting issue.

The issue involved the early booking of commercial income and delayed booking of costs, the company said, triggering a third profit warning in three months. Tesco, which has done a preliminary investigation into its U.K. food business, said it hasn't ruled out illegal activity but would wait until the results of the investigation are known.

"We have uncovered a serious issue and have responded accordingly," said Mr. Lewis,"

'via Blog this'

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