Irregularities at aerospace company push up losses
Accounting irregularities included overstatement of assets, as well as unsupported and unrecorded transactions
Canadian aerospace company Magellan Aerospace has uncovered accounting
errors and misstatements which have pushed up its net losses to $11.3m (£5.7m).
The company’s 2007 loss was 14 cents per share compared with 11 cents per
share in 2006.
The company said it began internal investigations into the irregularities
after they were detected at one of its divisions collecting outstanding accounts
receivable, AP reported.
During the inquiry, discoveries were made on overstatement of various assets
on the balance sheet, which resulted from improper accounting, as well as
unsupported and unrecorded transactions between 2003 and 2007.