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Home / brazil / Via Varejo investigates balance sheet fraud after termination; shares fall up to 9% but soften

Via Varejo investigates balance sheet fraud after termination; shares fall up to 9% but soften

After trading was suspended between 11:56 am (GMT) and 12:16 pm, Via Varejo (VVAR3) shares resumed trading by more than 9% and went on auction amid news of an investigation into accounting fraud in the state of São Paulo. company balance sheet. At 12:55 pm, the papers came out of the auction with less significant drop, operating down 5.64% to $ 6.69; at 13h31, the low was 3.53%, at $ 6.84.

In a statement of clarification to the market, Via Varejo stated that it is investigating irregularities in the preparation and disclosure of the company's financial information, after reporting about possible illegal practices.

According to the owner of the trademarks Casas Bahia, Ponto Frio and, the first phase of investigations into the alleged accounting irregularities did not confirm the allegations contained in the anonymous complaints.

Already the second and last phase of the investigation is still in progress, but the company's management, until then, had no access to anything that would alter the results of the previous phase.

The company confirmed that the complaints were received between late September and early October.

Investigations are carried out by a committee, which reports to the company's Board of Directors and is advised by renowned independent consultants, Via Varejo said.

In addition, the company has preliminarily concluded that, since so far there has been no confirmation of how alleged the allegations have been made, there are no material effects to the quarterly information that will be disclosed on this date as a result of the investigation so far.

According to information from Suno Notícias, company executives would have accounted for expenses as capex (investments in capital goods) as if the amount were intended for investments to improve the operation; but in fact the money would have gone to opex (operating expenses).

This change would have been due to the possibility of turning capex expenses into revenue and reducing the company's provisions. Thus, the company's return on investment would be greater than the real.

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