Tesco dodgy dealings?
Discussion
Wills2 said:
Tesco aren't bad payers in terms of time but they are "debit note happy"
Absolutely. And you try speaking to the team in India to get it resolved - practically impossible. Only when there is some scale to the dispute will the buyer get involved.Having experienced their practices being a supplier to Tesco with a plc and a smaller organisation, I think there will be few people outside their employees and families who have any sympathy at the moment.
Edited by Vee on Sunday 28th September 09:53
jbswagger said:
at what point do the auditors get a roasting for signing the accounts off?Scuffers said:
jbswagger said:
at what point do the auditors get a roasting for signing the accounts off?https://www.frc.org.uk/News-and-Events/FRC-Press/P...
Scuffers said:
jbswagger said:
at what point do the auditors get a roasting for signing the accounts off?It will also depend on how the error arose, what questions were asked, what representations were received from management and whether there would have been a reasonable expectation that a well-planned and executed audit should have picked them up. Lots of unknowns in there at the moment but I imagine that PwC are looking very closely at what happened. Time will tell.
I read that as maybe, just maybe Tesco did nothing wrong from an accounting point of view.
And maybe the Sun etc should stop trying to crucify this very successful British company and support them instead.
Even better maybe David Cameron should do that as well rather than welcoming Aldi's expansion in the UK.......idiot
Imagine the French or German prime ministers doing that
And maybe the Sun etc should stop trying to crucify this very successful British company and support them instead.
Even better maybe David Cameron should do that as well rather than welcoming Aldi's expansion in the UK.......idiot
Imagine the French or German prime ministers doing that
lauda said:
I'd wager that every set of accounts of every company in the FTSE 100 are 'wrong' in that they contain errors of one sort or another but it's only a problem if they're wrong by a material amount.
Correct, and for a company so large, materiality can be set in the millions of pounds - i.e. a £1,000,000 error is just swept under the carpet as 'not worth bothering about'.From https://www.accountancylive.com/tesco-mis-statemen...
"In Tesco’s 2013 audit report the level of materiality for the group as a whole is disclosed by the auditors as being £150m which represents 5% of adjusted profits.
Additionally, Tesco’s auditor, PwC, reports that it agreed with the audit committee that it would report misstatements identified during the audit above £7m, as well as misstatements below that amount that for qualitative reasons should be reported in the auditor’s opinion."
lauda said:
Scuffers said:
jbswagger said:
at what point do the auditors get a roasting for signing the accounts off?It will also depend on how the error arose, what questions were asked, what representations were received from management and whether there would have been a reasonable expectation that a well-planned and executed audit should have picked them up. Lots of unknowns in there at the moment but I imagine that PwC are looking very closely at what happened. Time will tell.
The 2013 and 2012 statutory accounts reportedly contained misstatements (£70 million quoted I think) but they were below materiality.
Adrian W said:
I read that as maybe, just maybe Tesco did nothing wrong from an accounting point of view.
And maybe the Sun etc should stop trying to crucify this very successful British company and support them instead.
Even better maybe David Cameron should do that as well rather than welcoming Aldi's expansion in the UK.......idiot
Imagine the French or German prime ministers doing that
It depends entirely on how you measure success. And maybe the Sun etc should stop trying to crucify this very successful British company and support them instead.
Even better maybe David Cameron should do that as well rather than welcoming Aldi's expansion in the UK.......idiot
Imagine the French or German prime ministers doing that
If you're talking about bottom line and dividend at the cost of squeezing their suppliers until the pips squeak, saturation to the point where they admit over expansion and ruthless treatment of their own staff, then yes, they're fabulously successful.
I'd rather go hungry than shop with them.
ninja-lewis said:
Furthermore The material misstatement was in a half-year trading update to markets, which goes nowhere near the auditors. The auditors would review the Interim Management Statement (a review provides Limited Assurance vs the Reasonable Assurance of an audit) but the error was caught internally fairly quickly).
The 2013 and 2012 statutory accounts reportedly contained misstatements (£70 million quoted I think) but they were below materiality.
Yeah, but let's not let facts like that get in the way of a good old witch-hunt. The 2013 and 2012 statutory accounts reportedly contained misstatements (£70 million quoted I think) but they were below materiality.
lauda said:
ninja-lewis said:
Furthermore The material misstatement was in a half-year trading update to markets, which goes nowhere near the auditors. The auditors would review the Interim Management Statement (a review provides Limited Assurance vs the Reasonable Assurance of an audit) but the error was caught internally fairly quickly).
The 2013 and 2012 statutory accounts reportedly contained misstatements (£70 million quoted I think) but they were below materiality.
Yeah, but let's not let facts like that get in the way of a good old witch-hunt. The 2013 and 2012 statutory accounts reportedly contained misstatements (£70 million quoted I think) but they were below materiality.
sleep envy said:
It depends entirely on how you measure success.
If you're talking about bottom line and dividend at the cost of squeezing their suppliers until the pips squeak, saturation to the point where they admit over expansion and ruthless treatment of their own staff, then yes, they're fabulously successful.
I'd rather go hungry than shop with them.
I'm not a fan, but do you really think that if the countries largest private employer went out of business it would be s good thing?If you're talking about bottom line and dividend at the cost of squeezing their suppliers until the pips squeak, saturation to the point where they admit over expansion and ruthless treatment of their own staff, then yes, they're fabulously successful.
I'd rather go hungry than shop with them.
When my accountant, failed to record a large pension payment that was made by cheque just before the end of my financial year, but not cashed by my pension company until after the end, thus overstating my profit by £5K, he said humorously "Well it just means that your profit will be £5K lower next year." (We agreed to put it right before submission to HMRC)
If Tesco are overstating profit one year, surely it evens out the next? More or less. And it means they have to pay corporation tax early, which can only be good for GB Plc.
If Tesco are overstating profit one year, surely it evens out the next? More or less. And it means they have to pay corporation tax early, which can only be good for GB Plc.
Pit Pony said:
If Tesco are overstating profit one year, surely it evens out the next? More or less. And it means they have to pay corporation tax early, which can only be good for GB Plc.
If it was a one off "error" or fudge it would as you say even out.The problem is that these sorts of things need to be perpetuated, and in what is already no doubt a complex accounting process, they can be "obscured" for some time. ie they overstate each year so big variances not necessarily apparent. Will catch up with you eventually though.
Different to the simple cock-up by your accountant.
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