GE makes $343m accounting restatement
General Electric restates accounts by $343m after investigation into derivatives and interest-rate swap accounting
General
Electric has restated its accounts to the tune of $343m (£174m)
after overstating its profits.
The restatement follows a Securities & Exchange Commission investigation
into the company’s derivatives and interest-rate swaps accounting.
It affects the company’s accounts from 2001 to 2005, but has not changed its
liquidity.
Keith Sherin, senior vice-president and CFO of GE, said: ‘Our commercial
paper hedge positions were consistent with our risk management policies and
economic objectives.
‘While we are disappointed that our program did not meet the technical
requirements of SFAS 133, we are committed to the highest standards of
controllership and transparency and ensuring appropriate application of SFAS
133. We have corrected our commercial paper hedge policies and documentation,
and related internal controls, as of January 1, 2007.’
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