This just in to me from an anonymous donor…
Dell to restate 2003-2007 financials amid accounting scandal
Dell reported that it will restate the company’s financial statements going back to fiscal 2003 due to accounting fraud perpetrated by senior management. According to a statement released by the company, senior management of Dell regularly falsified quarterly returns from 2003 through 2006 to create the appearance that the company had met sales targets. The disclosure comes after a year-long internal investigation into accounting irregularities that involved more than 375 professionals deployed across all the company’s major regions. The investigation identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets. Dell said that the amounts the company is restating vary by quarter and year, and that it expects the biggest restatements to come in the first quarter of 2003 and second quarter of 2004, where reductions should be 10 percent to 13 percent. In a number of other quarters, the reduction is expected to change 5 percent or less. All told, the company expects the cumulative change to net income for the restatement period will be a reduction of between $50 million and $150 million. While Dell did not comment specifically on the fate of the perpetrators of the fraud, the company said: “Personnel actions, including terminations, reassignments, reprimands, increased supervision, training and financial penalties – have been or will be taken.” A separate SEC probe into the matter is ongoing and the company noted there is no assurance that there will not be additional issues arising from that investigation.
To get the details from Dell’s website directly, click here.
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