WorldCom is preparing a new revision of its earnings that could add about $2 billion to already disclosed misaccounted funds, the Wall Street Journalsaid today.
The report, which cited "people close to the situation," said officials at the US telecom giant were expected to present the new findings to the Securities and Exchange Commission tomorrow.
The Journalsaid the sources had warned the $2 billion figure may be preliminary in a "fluid" situation as WorldCom representatives conduct a review of the company's books.
The exact breakdown isn't yet known, but some of the revision may partly relate to write-downs of assets, the Journalreported.
The anticipated new disclosure marks the second time WorldCom has added large amounts to the earnings restatement that drove the world's second-largest long-distance communications company into bankruptcy in July.
The company announced then it had inflated revenue by $3.8 billion over the past several years. It added more than $3 billion in restatements in August.
AFP