Computer 2000 accused of accounting errors

US-based technology distributor Tech Data will restate some or all of its financial results from the past three years to reflect accounting improprieties uncovered at its UK subsidiary Computer 2000.

The company’s audit committee, with advice from Ernst & Young accountants, warned shareholders that the move could see £21m cut from the company’s previously reported net profits.

Tech Data announced on 21 March that the restatement will be needed to correct accounting errors that are likely to reduce operating income from $30m to $40m and consolidated net income from $25m to $33m over the three years.

The announcement also said...

Continued...

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Comments

Interesting.  Have been

Brend201 | | Permalink

Interesting.  Have been having great difficulty getting them to reply to questions on billing.

grecianwebb's picture

numbers the wrong way around    1 thanks

grecianwebb | | Permalink

"...likely to reduce operating income from $30m to $40m and consolidated net income from $25m to $33m over the three years."

They should be happy the reduction has increased the numbers!

Poor wording    1 thanks

Brend201 | | Permalink

The article was poorly worded above.  This is what the company itself says: 

"The Company estimates that the restatement will reduce previously reported consolidated operating income by an aggregate amount of approximately $30 million to $40 million, and consolidated net income by an aggregate amount of approximately $25 million to $33 million, over the three fiscal year periods."

John Stokdyk's picture

Since corrected

John Stokdyk | | Permalink

Thanks for bringing the wording issue to our attention.