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Freedom Foods accounting scandal worsens, as ASIC begins its investigation
Cereal and snack-maker Freedom Foods is being investigated by the corporate regulator ASIC for a series of “significant” accounting problems.
Key points:
- The company will have lost its chairman, CEO and CFO, in quick succession, by early next year
- Freedom published an “insider trading” policy, when it confirmed ASIC was investigating the business
- Deloitte found some executives, between 2014-2019, had paid themselves extra (without getting board approval)
The beleaguered company has also revealed that its earnings would be hurt by $590 million in write-downs.
In a series of announcements made after the market had closed on Monday, the company said a profit of $11.6 million in the 2018-19 financial year had become a $145.8 million loss.
It said…
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