Music label probes accounting fraud

News Article - 26 October 2006
Category: Business

The world's third-biggest record label EMI has discovered an instance of accounting fraud at its branch in Brazil.

The company has described the finding as a "one-off accounting fraud affecting the reporting of results" and has resulted in the overstatement of revenues and profits of an estimated £21 million.

According to EMI, a full inquiry has been launched into the findings and a number of senior managers at the Brazilian branch have been suspended pending the outcome of the inquiry.

The record label is home to rock giants Iron Maiden and Pink Floyd, as well as modern popular acts including Robbie Williams and Corinne Bailey Rae.

Shares in EMI lost 4.3 per cent, falling by 12 pence each following the announcement, which came days after the company said its underlying pre-tax profit fell by 34 per cent in the first half of the year compared with the same time last year.

Article keywords: accounting fraud, fraud

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