General Electric has uncovered 'significant deficiencies' in its accounting for revenue, it has said as it pledged to tighten its financial controls.

The US giant said in its annual 10-K that the problems emerged after a review of revenue recognition prompted by an SEC investigation.

The revenue issues relate to revenue received in connection with spare parts.

'We have concluded that the internal control deficiencies implicated by the items identified above constitute significant deficiencies in our internal control over financial reporting, but do not constitute a material weakness in the Company’s internal control,' the company said.

There will be no adjustments to figures resulting from the deficiencies, however. Instead, the company said it was tightening controls by improving the understanding of accounting policies for unusual transactions, among other moves.

GE has had to restate earnings in recent years, having had to reduce stated earnings of $118bn by £297m between 2002 and 2007.

Further Reading:

Read GE's statement