Global Crossing has said it will restate financial results to
remove nearly $19m (£12.3m) in revenue related to exchanges of
network capacity with other communications companies.
The bankrupt telecommunications company said it had relied on
accounting guidance from Arthur Andersen to determine ways of
recording sales of network capacity and services.
The US Securities and Exchange Commission (SEC), which is already
investigating Global Crossing, advised the company that these
accounting principles did not comply with Generally Accepted
Accounting Principles (GAAP). Global Crossing is also being
investigated by the US Department of Justice.
The revised financial statement will cover revenue reported by
Global Crossing for the nine months ending 30 September 2001.
Global Crossing reported $2.4bn in revenue for that period. The new
statement also will increase the company's net loss of $4.77bn for
the nine months by nearly $13m.
The company expects the revised statements to be reviewed by
another accounting firm, which Global Crossing has not yet named.