WorldCom revealed late Thurs. that internal review had found anot...
WorldCom revealed late Thurs. that internal review had found another $3.3 billion in improperly reported earnings since 1999, nearly doubling initial $3.8 billion that was announced in late June. As result, company said it would have to restate its…
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financial report for 2000, in addition to already announced restatement of 2001 and first quarter 2002. WorldCom said in news release that it was continuing its internal financial investigation and “investors and creditors should be aware that additional amounts of improperly reported EBITDA [earnings before interest, taxes, depreciation and amortization] and pretax income may be discovered and announced.” Company said it expected further writeoffs of previously reported assets, “including the likelihood that it may determine all existing goodwill and other intangible assets, currently recorded as $50.6 billion, should be written off when restated 2000, 2001 and 2002 financials are released.” It also will reevaluate “carrying value of existing property, plant and equipment.” Meanwhile, House Financial Services Committee Chmn. Oxley (R-O.) said Fri. he planned to subpoena more documents from Citigroup as part of investigation into WorldCom and activities of financial analyst Jack Grubman.