Kodak find errors in tax accounting
Photography giant Eastman Kodak has revealed it has delayed the publishing of its final results due to errors in its accounts.
The company said that it had discovered problems in the company’s accounting for income tax and was working with Big Four firm PricewaterhouseCoopers in order to determine the magnitude of these errors.
Kodak reassured investors that due to the nature of the errors, it would have no effect on the company’s revenue, cash flow or its earnings before taxes, although it may affect post-tax income.
It did warn however that under section 404 of the Sarbanes-Oxley Act, the error constitutes a material weakness in internal control and, as a result, PwC would be issuing an adverse opinion on the company?s internal controls when its annual report is published.
‘We are moving as quickly as we can to take appropriate corrective action, and we are keeping the Audit Committee of the company?s Board of Directors fully informed,’ said Robert Brust, Kodak’s chief financial officer. ‘We expect to complete the work during the next six weeks, at which time we will issue final results for the fourth quarter and for the year.’