Global Crossing to restate revenue

Global Crossing has said it will restate financial results to remove nearly $19m (£12.3m) in revenue related to exchanges of...

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.

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