Two former directors at Tesco have gone on trial, accused of manipulating figures that resulted in the firm’s profits being overstated by £250m.

Chris Bush, Tesco’s former UK managing director, and ex-UK food commercial director John Scouler are each charged with one count of fraud and false accounting.

The group’s former UK finance director Carl Rogberg, charged with the same offences, is not well enough to stand trial.

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The Financial Reporting Council (FRC), the accounting watchdog, has laid out a series of reforms to tackle the “underlying falling trust in business and the effectiveness of audit”.

It also severely rebuked Big Four accountancy firm KPMG, the auditor of collapsed outsourcing giant Carillion, finding “a deterioration in the quality of the audits that we inspected to an unacceptable level”.