Blaming inappropriate accounting practices, Qwest Communications
International Inc. stepped deeper into the accounting mire, announcing that it
will reissue its yearly financial statements from 1999 to 2001 as part of an
ongoing internal investigation.
The Denver-based Baby Bell, already facing a Securities and Exchange
Commission investigation regarding its revenue-accounting practices,
acknowledged Sunday that in some cases, it applied incorrect accounting policies
to certain optical-capacity asset sales from 1999 through 2001.
Given that, 'Certain adjustments may be required to correct the period in
which the revenue was recognized to reverse the recognition of revenue with
respect to other transactions,' according to a Qwest statement.
The regional Bell operating company also noted that adjustments will also be
needed to account for some equipment sales and improperly recorded expenses from
other telecommunications providers in 2000 and 2001.
Given the ongoing SEC investigation, however, Qwest is not saying when the
restatements will be issued. Further, the company is also withdrawing its
financial guidance for 2002.
Qwest is set to report its second-quarter earnings and revised guidance Aug.