ID NEWS: Ahold ups overall accounting irregularities figures, slightly reduces USF number

Royal Ahold, Zaandam, The Netherlands, has announced it has completed all internal forensic accounting investigations of subsidiaries and joint ventures.

In total all the probes found a total of approximately Euro 970 million of accounting irregularities that may require adjustments in the year 2002 and restatements in one or more prior years. This includes an additional approximate Euro 73 million of intentional accounting irregularities related to improper purchase accounting--excluding the pre-tax earnings reductions of an expected USD $856 million related to U.S. Foodservice (USF), Columbia Md. This is $24 million less than an approximate USD $880 million previously announced in relation to USF.

The additional Euro 73 also excludes USD $29 million principally related to Tops Markets in the U.S. and excludes a reduction of pre-tax earnings of approximately Euro 8 million related to Disco S.A.

Ahold management and an Audit Committee of the Supervisory Board are studying the findings to assess whether additional adjustments may be required to correct any accounting errors and to identify needed improvements in controls and procedures at relevant companies.


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