The Financial Reporting Council admitted it is carefully considering launching a full investigation related to Tesco's accounting blunder.
The watchdog, Financial Reporting Council, along with the polices, accountants and editors said it has given careful consideration after studying the data regarding Tesco's accounting scandal.
Multinational grocery and general merchandise retailer Tesco is facing an investigation by the Financial Conduct Authority on reportedly overstating its profits.
Tesco had a major blow last Sept. after the company stated that it got its reports wrong by "overstating income and understating costs." The miscalculation was also brought about by the company not recording its payments as soon as it placed orders with suppliers, according to Reuters.
Tesco reportedly cut its first-half profit outlook by 250 million pounds ($408.50 million).
Meanwhile, U.K.'s biggest retailer is reported to fully cooperate with the FCA and other authorities investigating the issue, according to a statement released by Cheshunt, England-based Tesco.
The U.K. Financial Reporting Council, an organization able to fix and restate their financial accounts, is also currently investigating on the matter.
The retailer's profits tumbled down 92 percent to 112 million pounds and its shares also dropped down dramatically on Friday.
Tesco faced charges after a whistleblower revealed an issure regarding the way Tesco booked payment from suppliers. Furthermore, forensic accountants allegedly claim that the profits of the retail giant during the first-half of year has been "artificially inflated" by 263 million pounds rather than the initial estimate of 250 million pounds.
Auditing frim Deloitte also investigated on the issue and demanded to view more than 6m documents and studied over 700 supplier invoices. They discovered that the suppliers payments have been tampered against Tesco's accounting policies. All these information are being shared to the FCA and FRC.
The FRC said it would scrutinize Thursday's update and continue to gather information to determine whether it should take regulatory action
