Refer to the Chapter Opener on the Tesco’s accounting scandal at the start of the chapter. Briefly comment on the questions mentioned therein. Does it raise any industry level issue at an international level? Discuss.

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N Not So Funny Accounting Problems @Tesco Tesco PLC is a British multinational grocery and general merchandise retailer. In 2014, it came in news in the wake of an unfortunate accounting scandal. It was found to have overstated its profits by about *2,500 crore after revenue recognition irregularities were spotted in its half-yearly results. This trick was as old as book-keeping itself: the premature recognition of revenue. Suppliers make payments to supermarkets that meet certain sales targets for their products, run promotions or place the goods in eye-catching places, such as at the end of aisles. Tesco managers appear to have been very ambitious in capturing these "rebates". Perhaps, they also underreported the costs of stolen and out-of-date produce. The supermarket originally predicted its half-year trading profit would be around £1.1bn, but this figure was cut back by £263m. The above discussion brings some interesting questions: