Topic: This assignment covers the in-depth theoretical concepts with some practical accounting task application based on the topics from the subject. Task Details: This assignment requires a...

Scandal at Steinhoff
Introduction
Steinhoff International is an international South African company which deals with different household products. The company has its operations across the globe. It operates in different countries like Europe, Africa, Asia, United States, Australia and New Zealand.
Story and News:
The company has recently been caught for the accounting scandal. The company has published a news stating that the accounting and the financial information of the company cannot be relied on needs to be restated. The company’s audited results for the year 2017 is put on hold and the investigation on the reports and the accounting process is being done on the “accounting irregularities” of the company. The company has been following irregularities since 2014. All the financial information of the company from the year 2014 has been said to be incorrect.
The company has its operations on more than 40 retailing brands in more than 30 countries and has been positioned as one of the largest companies in the terms of the market value and market capitalization. The company was valued at more than R300 billion which made it in the top 10 companies. With its global existence, the company attracted the prominent investors. The company has successfully tripled its shares from2012 to 2016.
With the news of the accounting irregularities, the company’s shares dropped by 90% on December 5’ 2017 which eroded R180 billion of market capitalization of the company. The company is facing several issues in different countries like Europe and South Africa and different investors has led to the all possible lawsuits on the company. (Cronje, 2018)
Accounting implications
The scandal points out serious gaps between the checks and the balances in the investment space. The company has the stated that it has the incorrect valuation of the 6 billion euros worth of assets on the balance sheet of operations in its Europe division. The report as per JP Morgan Chase stated that the company lacks pivotal information that from where has the company generated the...