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The Securities & Exchange Commission launched a formal investigation on 5 February into the company’s accounting problems.
The tyre manufacturer announced four months earlier that it was restating its financial results for the years 1998 to 2002, lowering its income in that period by $84.7m (£45m).
Goodyear says one of the factors that led to this discrepancy was the erroneous implementation of a new enterprise resource planning accounting system five years ago. However, spokesperson Keith Price told Accountancy Age that the company was not blaming Germany’s SAP AG, which makes the accounting software.
‘It’s a complicated process, converting from legacy computer software to ERP,’ he said.
The company says mistakes were also made in inter-company billing systems. More than 36 lawsuits have been launched by investors against the company since its announcement of a restatement of earnings.
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