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Fresh Accounting Issues Add Scrutiny on Brazil Retailers
- Magazine Luiza found ‘inconsistencies’ in some transactions
- Shares fell as much as 10% on open, and are down 94% from peak
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Magazine Luiza SA’s announcement of accounting “inconsistencies” deals another blow to Brazilian retailers that have struggled after the scandal that brought down Americanas SA.
The company had to restate previous financial statements and write off 829.5 million reais ($169 million) after an audit and compliance committee found mistakes in accounting entries, according to a filing late on Monday. The firm recognized some revenues from commercial deals with suppliers in the entries before the terms of such agreements were matched, it said.