Another US company has admitted to using improper accounting practices in its business.
Qwest Communications, which is already the subject of an accounting investigation by the US Securities and Exchange Commission, said it used improper accounting methods between 1999 and 2001 and would restate its financial results.
The Denver-based company also faces a criminal probe by the US Justice Department.
Quest has also announced that it has withdrawn its financial forecasts for 2002, citing weakness in the telecommunications sector, stiff competition and the economy.
So far, Qwest said it had uncovered errors that led it to book about $874m in revenue for 2000 and 2001 in lump sums up front instead of over time.
It also understated expenses in 2001 by $113m, but overstated them by $15m. The company did not say how soon the restatement would be made public.
Qwest's restatement is dwarfed by the record-breaking $4 billion restatement by WorldCom that wiped out all of last year's reported profit. A number of investigations have descended on WorldCom investigating those revelations.
