New York (May 1, 2003) -- Embattled conglomerate, Tyco International said 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 much 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 at the company.
The new charges would mean that the company’s aggregate of write-downs, restatements and charges would now exceed $7 billion. The conglomerate ousted its chief executive Dennis Kozlowski last June under accusations of mismanagement.
The discovery of the new accounting inaccuracies comes just months after an audit in December by high-profile attorney David Boies found “no significant fraud.”
-- WebCPA staff
