Tesco pays the price for its accounting scandal
Tesco dominates the financial news this morning after the retail giant reached a settlement agreement for shareholders following an accounting scandal two and a half years ago. In addition to a fine of £129 million, Tesco will pay out about £85 million (plus interest) to investors in compensation. The money relates to an admission in 2014 that Tesco had been booking income from suppliers early. Put simply, the supermarket had brought forward payments from commercial suppliers for special deals such as promotions. Although the black hole was initially thought to be £263 million, it later transpired that the total was £326 million. Today’s deal – also known as a Deferred Prosecution Agreement