BusinessBusiness RecoveryWorldCom restates $2bn of accounts

WorldCom restates $2bn of accounts

WorldCom is to restate its financial accounts by another $2bn, the third restatement in three months.

Link: WorldCom special report

The company is expected to meet with the Securities and Exchange Commission later today, and will push its accounting shortfall up to $9bn. The company is also expected to discuss plans for a goodwill write-down of $50bn, according to the Financial Times.

The company declared a $3.8bn profits overstatement in June, but this grew to $7.1bn in August when investigators discovered more overstated profits.

But some observers said that by showing willing to correct over-aggressive accounting strategies of the past the company can clarify its future position and speed up negotiations with bondholders over a debt-for-equity swap.

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