Superdry Plc – Half year report – 26 October 2019
Explanatory Notes to the Interim Financial Information (unaudited) (extract)
19. Prior year restatement
An error associated with inventory accounting in the prior year has been identified during the course of H1 FY20. Inventories are valued at the lower of cost and net realisable value. Cost comprises costs associated with the purchase and bringing of inventories to the distribution centres. The historic journal entries for stock cost are complex. The error of £3.9m relates to the system of recording and allocating cost variances related to freight, duty, and other charges, and transfers between warehouses. We have reviewed the recording processes and concluded that the record keeping process was overly complex. We have now simplified the accounting. The impact of the adjustment on the relevant financial statement line items is set out below.
The isolated error arose in the second half of 2019 and hence 2018 H1 condensed Group balance sheet as at 26 October 2019 and Condensed Group statement of comprehensive income have not been restated. A restated full year comparative Condensed Group statement of comprehensive income and condensed Group balance sheet as at 26 October 2019 will be provided at the year ended 25 April 2019.