Accountancy Age, Accountancy Age, Thursday 1 July 2010 at 09:43:00

Tesco defends accounting treatment


Supermarket giant Tesco has defended its accounting treatment after ananalyst said the company was operating ?aggressive? accounting policies.

A Citi analyst said Tesco had a ?more aggressive policy? than its competitorsin the areas of revenue recognition, depreciation, the allocation of profitsfrom property, capitalised interest expenses and pension accounting.

The analyst found that the effect of these policies is that they ?render the[profit & loss] bottom line significantly different from what a peer companymight report?, according to The Independent.

Tesco has defended its statements which it said it auided byPricewaterhouseCoopers.

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