Ahold Accounting Probe Completed

The total damage is put at about $1.13 billion.
Publish date:

The total value of accounting errors at supermarket operator



was 970 million euros, or about $1.13 billion, a just-completed investigation found.

The internal probe -- which followed revelations of major accounting problems at the company's U.S. Foodservices unit last winter -- has been completed, Ahold said. On that news, the stock rose 36 cents, or 4.3%, to $8.73.

The company said it found an additional 73 million euros in irregularities for improper purchase accounting. It confirmed a $29 million reduction for bad accounting at it Tops Market unit, and an 8 million euros reduction related to various problems at Disco S.A.

As a result of the investigation, Ahold said that it may adjust 2002 earnings and restate earnings for one or more prior years. The company has created a task force to address accounting practices. Ahold is also making personnel changes at its U.S. Foodservice, Disco, Tops and parent company divisions.

Ahold said it was working to complete the audits of its 2002 consolidated financial statements by Aug. 15, required under its 2.65 billion euros credit facility. The company also said that it is filing a notification of late filing with the

Securities and Exchange Commission

for its 2002 fiscal year report.