This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-29306444

The article has changed 16 times. There is an RSS feed of changes available.

Version 3 Version 4
Tesco suspends execs as inquiry launched into profit overstatement Tesco suspends execs as inquiry launched into profit overstatement
(35 minutes later)
Tesco says it has suspended "a number of people", including four executives, after it overstated its half-year profit guidance by £250m. Tesco has suspended four executives, including its UK managing director, after the supermarket overstated its half-year profit guidance by £250m.
It has launched an investigation headed by Deloitte. The supermarket chain says it is now working to establish the impact of the issue on its full-year results.It has launched an investigation headed by Deloitte. The supermarket chain says it is now working to establish the impact of the issue on its full-year results.
Shares fell 10% in early trading.Shares fell 10% in early trading.
"We have uncovered a serious issue and responded accordingly," said Tesco chief executive Dave Lewis."We have uncovered a serious issue and responded accordingly," said Tesco chief executive Dave Lewis.
On a conference call later, Mr Lewis said "a number of people" had been suspended from duty while the investigation is under way, including four senior executives. On a conference call later, Mr Lewis said "a number of people" had been suspended from duty while the investigation is under way.
UK managing director Chris Bush is one of those suspended, according to Radio 5 Live presenter Adam Parsons.UK managing director Chris Bush is one of those suspended, according to Radio 5 Live presenter Adam Parsons.
Mr Lewis, who took the helm at Tesco on 1 September, said he expected the group "to operate with integrity and transparency".Mr Lewis, who took the helm at Tesco on 1 September, said he expected the group "to operate with integrity and transparency".
"We will take decisive action as the results of the investigation become clear," he added."We will take decisive action as the results of the investigation become clear," he added.
Results delayedResults delayed
On 29 August, Tesco had said it expected its trading profit for the six months to 23 August to be about £1.1bn.On 29 August, Tesco had said it expected its trading profit for the six months to 23 August to be about £1.1bn.
In its latest statement, Tesco said the profits overstatement was "principally due to the accelerated recognition of commercial income and delayed accrual of costs".In its latest statement, Tesco said the profits overstatement was "principally due to the accelerated recognition of commercial income and delayed accrual of costs".
It also said some of the error - which referred to its expected profits for the six months to 23 August - was due to "in-year timing differences".It also said some of the error - which referred to its expected profits for the six months to 23 August - was due to "in-year timing differences".
The error emerged when the firm was preparing its interim results.The error emerged when the firm was preparing its interim results.
It had originally planned to publish these on 1 October, but they have now been pushed back to 23 October.It had originally planned to publish these on 1 October, but they have now been pushed back to 23 October.
Deloitte will carry out its investigation with Freshfields, the group's external legal advisers.Deloitte will carry out its investigation with Freshfields, the group's external legal advisers.
Tesco's usual auditors are PricewaterhouseCoopers.Tesco's usual auditors are PricewaterhouseCoopers.
Profit warningProfit warning
Shares in Tesco reached an 11-year low in August after the firm cut its full-year profit forecast to £2.4bn from £2.8bn.Shares in Tesco reached an 11-year low in August after the firm cut its full-year profit forecast to £2.4bn from £2.8bn.
The supermarket group has been battling falling sales and a decline in its market share as discount chains such as Aldi and Lidl have gained in popularity.The supermarket group has been battling falling sales and a decline in its market share as discount chains such as Aldi and Lidl have gained in popularity.
Previous chief executive Philip Clarke stood down in July after his attempts to revive Tesco's fortunes through a £1bn turnaround plan failed.Previous chief executive Philip Clarke stood down in July after his attempts to revive Tesco's fortunes through a £1bn turnaround plan failed.
AvaTrade chief market analyst Naeem Aslam said Tesco had been "extremely slow" to respond to market changes. "Today's news is another disaster for the company," he added.AvaTrade chief market analyst Naeem Aslam said Tesco had been "extremely slow" to respond to market changes. "Today's news is another disaster for the company," he added.