Tough day for EMI. The label released a statement saying that it has uncovered a "one-off accounting fraud" in its Brazillian office. The fraudulent numbers will force EMI to restate its earnings and take a one time accounting charge of approximately £9m (US 16.8m) during the six months ending on September 30th, 2006. Glenn Coolfer quips, "To put it in perspective, operating profit for the year ending March 31, 2006 was £250.5 million, of which £9 million is about 3.5%. Put another way, it's like KT Tunstall never existed."Also on EMI's plate, as the last major holdout for YouTube licensing, EMI's position gets weaker by the day. Digital Music News reports that EMI is finally talking to YouTube seriously about a similar deal to those struck between YouTube and other major labels. Hopefully for EMI's shareholders, "wait and see" doesn't end up a detrimental strategy.
