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September 20, 2002 — (WEB HOST INDUSTRY REVIEW) — Bankrupt telecommunications carrier WorldCom?s move to restate its financial accounts by more than $2 billion is reportedly unlikely to affect the company?s bankruptcy proceedings.
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The company is expected to meet with the Securities and Exchange Commission on Friday to discuss its third accounting restatement in three months, bringing the value of the accounting misstatements at the company to $9 billion.
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Unlike the company?s previously-reported $7 billion in improper accounting, the latest restatement is said to involve accounting matters that had previously been open to interpretation, including mergers and acquisition accounting and write-downs.
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By voluntarily correcting these overly aggressive accounting strategies, WorldCom may be protecting itself from a future full-scale indictment by the Department of Justice, a fate seen WorldCom?s own former auditor, as well as that of Enron, Arthur Andersen.
