Spain’s Grifols SA is set to report an unexpected accounting adjustment related to its stake in Shanghai RAAS, according to a person familiar with the matter.

The company recorded €400 million more than it should have for the value of an asset owned by the Chinese firm, the person said, asking not to be named discussing private information. The adjustment, set to be announced as soon as Tuesday, will not affect Grifols’ profit and loss statement, the person said.

The discrepancy in accounting for reserves was discovered by Grifols’ new auditor, Deloitte, which was appointed this year.

A press officer for Grifols could not immediately comment.

Grifols has faced intense scrutiny of its accounts since January, when short seller Gotham City Research accused the pharmaceutical firm of manipulating its debt and earnings through transactions with a shareholder and vehicle linked to the Grifols family. 

Though it denied any wrongdoing, the firm removed all family members from executive roles, named new managers and pledged to improve its financial reporting.

The story took a further turn on July 8, when the company confirmed that the Grifols family and asset manager Brookfield were looking to buy and delist the company. Brookfield was granted access to the company’s books and is carrying out due diligence.

Grifols will report second-quarter earnings on Tuesday after the market closes in Madrid. A call with analysts is scheduled for 6.30pm local time.

  - Bloomberg