New York - Embattled conglomerate Tyco International said that it would take more than $1 billion in after-tax charges during its second quarter, following its discovery of new accounting irregularities.
Reports indicated that many of the new accounting problems were unearthed at the company’s fire and security division, and centered on acquisition accounting techniques that boosted financials. It also cited the conservative accounting interpretation of results by new management.
The new charges would mean that the company’s aggregate of write-downs, restatements and charges would now exceed $7 billion.
Last June, the conglomerate ousted chief executive Dennis Kozlowski, under accusations of mismanagement.
The discovery of the new accounting inaccuracies comes just months after an audit in December 2002 by high-profile attorney David Boies found “no significant fraud.”
