Computer 2000 faces fresh accounting investigation

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Computer 2000 faces fresh accounting investigation

Simon Quicke

The Financial Reporting Council (FRC) has kicked off an investigation into four years worth of accounts at Computer 2000 just months after an independent review into the accounting practices at the firm had been wrapped up.

The FRC decision comes even though an independent investigation instigated by Computer 2000 parent Tech Data concluded in February, looking into accounting practices across Europe and the restatement of the firm's consolidated financial statement.

C2000 first revealed last March that it would have to restate its quarterly and audited annual financial results going back to 2011 due to accounting errors at the UK business and as a result it would have to wipe off $25m on previously reported profits.

The latest twist in the saga comes with the FRC kicking off its own investigation:, "related to the years ended 31 January 2009 to 31 January 2013 inclusive" putting the issue back in the spotlight despite the independent review concluded earlier this year.

After the independent investigation Tech Data said that not only were millions going to be wiped off previously reported net income but the firm would also put aside $55.6m to cover potential VAT charges that were connected to the failure of its Spanish subsidiary to deal in the past with its taxes.


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