FCA to investigate Tesco after £250m accounting error

The Financial Conduct Authority will conduct an investigation into Tesco after the firm overstated its estimated half-year profits by £250m.

In a statement today, the embattled retailer said the overstatement of its expected profit for the six months to 29 August 2014 was largely due to the accelerated recognition of commercial income and delayed accrual of costs. In a conference call for investors, group chief executive Dave Lewis said Tesco  has contacted the financial regulator, which will investigate the matter. It has also suspended "a number of people", including four senior executives. Tesco shares dropped 11% to 205.55p shortly after the opening bell following the shock announcement. Tesco has also asked Delo...