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January 3, 2018

Steinhoff says accounting irregularities could go beyond 2015

South African retail firm Steinhoff International Holdings (Steinhoff), which received some major setbacks last year after Deloitte raised certain accounting irregularities concerns, said that it intends to further review and release financial restatement for years prior to 2015.

South African retail firm Steinhoff International Holdings (Steinhoff) has said that it intends to further review and release financial restatement for years prior to 2015.

Steinhoff received some major setbacks last year after Deloitte raised certain accounting irregularities concerns. In order to address these irregularities, the firm appointed PricewaterhouseCoopers (PwC).

Last December, Steinhoff had confirmed that its 2016 consolidated financial statements needs to be restated and can no longer be relied upon.

“Last December, Steinhoff had confirmed that its 2016 consolidated financial statements needs to be restated and can no longer be relied upon.”

The company stated that an internal review of the accounting irregularities is being carried out by the management and the PwC investigation team, and the timeline for completing the investigation remains uncertain.

Due to the ongoing investigations by the PwC, the company has kept its 2017 audited results on hold, and it confirmed that that the audited 2017 consolidated financial statements will be accompanied by the restated 2016 consolidated financial statements.

The consolidated statements will also be accompanied by a restated comparative 2015 statement, which will provide an additional insight into the cumulative and consolidated opening balances in the 2016 restated consolidated statement of financial position.

Steinhoff advised shareholders and other investors to exercise caution when dealing in the securities of the Group, due to the restatements, the 2016 and 2015 financial statements of Steinhoff International Holdings Proprietary and Steinhoff Investment Holdings as they can no longer be relied upon.