Nortel Downplays Restatement of Financial Results

Telecom News Editorials Reports Glossary

6:45 am on March 14, 2006 | Category: Business, Corporate

Nortel Networks said yesterday that, contrary to some media reports, its decision to restate financial results was not under any investigation from auditors.

The company’s statement claims that the restatement of earnings was due to some very minor revenue recognition mistakes. Auditors have co-incidentally been reviewing some “internal control deficiencies,” but this is unrelated to the restatement, and there is no suspicion of foul play within the company.

It is understanding that some investors would be alarmed at this development, especially after Ontario company’s major accounting scandal a couple of years ago. But new executives have been working hard to leave behind problems of the past, and boost investors’ confidence in the company.