Tesco suspends execs as inquiry launched into profit overstatement

DCFC79

Tesco has suspended four executives, including its UK managing director, after the supermarket overstated its half-year profit guidance by £250m.

Story here

Generali

From the OP's link:

In its latest statement, Tesco said the profits overstatement was "principally due to the accelerated recognition of commercial income and delayed accrual of costs".

Very Enron.

Loughton_Monkey

Isn't it strange that such a "financial mistake" results in immediate suspensions, an inquiry, and no doubt sackings (eventually).

Similar financial mis-managements in government however, produce no such results at all, either for politicians or mandarins.

I agree, though, that someone should be held accountable. It is either (a) an incompetent mistake, or (b) a failed attempt to massage the figures.

In my business life I saw several such large accounting errors, but 9 times out of 10 they were pure incompetence within big bureaucratic finance departments who (invariably) sucked up more headcount than pure "customer facing" staff.

Generali

In picture[STRIKE]s[/STRIKE]:

MoneyMate

Hope the Tesco executives get a good Tesco Boost out of work.

Bantex_2

Generali wrote: »

In picture[STRIKE]s[/STRIKE]:

Bit misleading as it only shows part of the scale.

Generali

Bantex wrote: »

Bit misleading as it only shows part of the scale.

Only if you can't do maths.

Bantex_2

Generali wrote: »

Only if you can't do maths.

If you can do maths you don't need the picture.

worldtraveller

Apparently the Tesco board also has more than it's fair share of ex CFO's. Sounds like there are now a few more ex's!

Generali

Bantex wrote: »

If you can do maths you don't need the picture.

A spreadsheet showing the rate of change is not as effective IMHO. Graphs are often used for this sort of thing, in maths as well as finance.

I suspect you're trying to use this as a stick to beat me with. It really is time you got over the referendum thing. Let it go, let the anger leave. You'll be happier for it.

Bantex_2

Generali wrote: »

A spreadsheet showing the rate of change is not as effective IMHO. Graphs are often used for this sort of thing, in maths as well as finance.

I suspect you're trying to use this as a stick to beat me with. It really is time you got over the referendum thing. Let it go, let the anger leave. You'll be happier for it.

Think you are confusing me with someone else.

Still thing just using part of a graph is misleading, when it makes a 10% change look like a 100% drop at first glance. Sort of equivalent to a sun headline about immigration.