Music company EMI has discovered accounting fraud at its Brazilian recorded music division where profit and sales figures were overstated, says BBC News
A statement from EMI says, "EMI Group announced that it has identified, through its internal controls, a one-off accounting fraud affecting the reporting of results at EMI's recorded music business in Brazil." EMI is conducting a full and thorough investigation. First results uncovered that revenues were overstated by $22.6m and profits by $17m. Scandal around Brazilian fraud brought EMI shares 12p lower to 268.75p. However, the fact that EMI itself unearthed the fraud may help to mend the damage. EMI hopes to fix this situation in the second half of the year on sales of CD's by big names like The Beatles, Norah Jones, Joss Stone and Robbie Williams.

MS NEWS