WH Smith said the supplier income issue was the result of a ‘target-driven performance culture and decentralised divisional structure, combined with a limited level of group oversight of the finance processes in North America’. 

It pointed to ‘weaknesses in the composition of the finance team in the region, and insufficient systems, controls and review procedures for supplier income across commercial and finance functions’.

Big Four firm Deloitte was hired by WH Smith in August to conduct an independent and comprehensive review for FY23 to FY25 focused on the way the business reported supplier income and compliance with IFRS accounting standards, including IFRS 15 Revenue from Contracts with Customers and IAS 2 Inventories.