RELATED-PARTY TRANSACTIONS
Steinhoff board: €12.8bn wiped out but more to come
Transactions with associate companies stretching back years are behind much of the €12.8bn wiped off Steinhoff International’s books, and the board has warned there may be more to come. It has also said it intends identifying and disclosing details of all the related parties. The €12.8bn restatement is more than twice the €6bn initially estimated by the board in December 2017, following the shock resignation of former CEO Markus Jooste. Steinhoff’s unaudited results for the six months to end-March 2018 include early details of the extensive restatement of the group’s balance sheet, which was previously bloated by related-party transactions, inflated profits and the "incorrect application of group accounting principles" under Jooste’s watch. As a result of ongoing investigations into the related-party transactions and accounting irregularities, management was forced to impair the value of the group’s reputation, known as goodwill, and brand names, as well as restate cash assets to th...
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