SEC looks into Ford restatement
Restatement cut losses by $850m (£448m)
Struggling carmaker Ford is being investigated by the
US Securities and Exchange Commission over its
recent earnings restatement brought about due to accounting errors.
According to a
filing
made with the SEC, Ford revealed that the inquiry is of an ‘informal’ nature.
Ford said it had been contacted by the SEC’s Division of Corporation Finance
and the Division of Enforcement.
The accounting errors were a result of the manner in which Ford counted
interest rate hedging by its financial arm,
Ford Motor Credit Company.
The errors narrowed the company’s net loss for the first nine months of this
year to $7bn from the initial report of $7.25bn, the company said last week.
It also reduced the third-quarter net loss to $5.2bn from previously reported
$5.8bn.
Further reading:
Ford seeks tax incentives for ‘green’ cars
Corporate recovery – Rover and out