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Steinhoff International, the retail conglomerate listed in Johannesburg and Frankfurt, said on Tuesday that its numbers for 2015 are unreliable and that prior years may also need to be restated.
The announcement of the restatements for 2015, is part of the investigation into the company's finances, being undertaken by PwC as an independent auditor alongside an internal.
Steinhoff's troubles began in December, when its CEO resigned after an internal investigation found that its figures for 2017 and 2016 were inaccurate.
"After careful consideration and taking into account the requirements of International financial Reporting Standards (IFRS) guidelines and the advice of various advisors, the company wishes to confirm that the audited 2017 consolidated financial statements of the company will be accompanied by the restated 2016 consolidated financial statements,” Steinhoff announced on Tuesday.
“In addition, the consolidated statements of financial position will be accompanied by a restated comparative 2015 statement of financial position of Steinhoff International Holdings Proprietary Ltd, the former listed holding company of the group (then called Steinhoff International Holdings Ltd), that will provide additional insight into the cumulative and consolidated opening balances in the 2016 restated consolidated statement of financial position.”
Steinhoff said that due to the restatements, the 2016 and 2015 financial statements of the holding company “can no longer be relied upon”.
The company also said that the internal and PwC investigations also affect the consolidated financial statements of Steinhoff Investment Holdings by virtue of its ownership of “certain European subsidiaries until April1, 2016.”
In in both cases Steinhoff added that restatements for years prior to 2015 are “likely to be required”.
The company’s Johannesburg stock was trading at R5.06 at just after 1:30pm UK time,...