Tesco Was Forced to Restate Its Earnings for the First

question 18

Multiple Choice

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K.food business had booked income early and delayed the booking of costs in order to improve appearances of financial performance.This scandal results from ________ and ________.

• A) poor environment; management systems
• B) poor governance; control
• C) external environmental factors; internal environmental factors
• D) leadership; financial systems

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Definitions:

IAS 1

International Accounting Standard 1, which outlines the presentation of financial statements, aiming for comparability, transparency, and fairness in financial reporting.

Financial Statements

A set of reports that detail the financial activities and condition of a business, including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.

GST Inclusive

A pricing format where the price of goods and services includes the Goods and Services Tax (GST) charged.

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