Financial Accounting News

Via Varejo Rises as Investigation Seen Linked to Former Mgmt

Dec. 13, 2019, 2:09 PM

Via Varejo shares rose as much as 4.9% to 10.49 reais after an investigation committee reported to the board of the company that evidence of accounting fraud and internal control failures was found.

  • Fraud involves manipulation of the company’s labor provision and improper deferral of asset write-offs and liabilities accounting
  • Adjustments in 4Q19 results estimated at around 1.2b reais-1.4b reais in Q419 results, with an impact on equity between 800m reais and 940m reais
  • Shares fell 3.1% on Thursday
  • The investigation is related to the practices of the company’s former management and is part of the adjustment phase the company...

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