The mining company's management said the correction follows a review of its accounting policies conducted by its new independent public accountant, PwC, in preparation for its upcoming annual audit.

Newmont management was quick to point out, however, that the transactions were fully described in the notes to its financial statements contained in the company's quarterly reports for each of the periods in question.

PwC was appointed in May 2002 as Newmont's independent public accountants, replacing Arthur Andersen.

"As a result of the review, Newmont, in consultation with PricewaterhouseCoopers, concluded that the prepaid forward sales contract did not meet the technical criteria to be accounted for in the manner reflected in Newmont's historical financial statements," company management stated in a press release. "Newmont, therefore, has determined to account for these transactions as a financing."

Newmont estimates that the restatement will result in a $6.5 million reduction in earnings over the three-year period.

Management added that PwC is re-auditing Newmont's financial statements for the three years ended December 31, 2001. The re-audit will be finished prior to the filing deadline for Newmont's quarterly report for the third quarter of 2002.

In other restatement news:

Hanover Compressor Co., a provider of outsourced natural gas compression services, said it will restate 1999 financial results to more properly reflect four transactions totaling $5.1 million of revenues and $2 million of net income.

"Senior management is satisfied it has conducted a thorough review of prior transactions and, consequently, will certify and file with the Securities and Exchange Commission within 30 days amended financial results for 1999, 2000 and 2001 to reflect the restatements," said John Jackson, Hanover chief financial officer. Jackson said information concerning its internal investigation will be provided to the SEC.

This is the third time Hanover has restated its financial results, according to reports.

"We're going to do this and move on," Jackson told Reuters. "I certainly believe it's the end."

Zila Inc. said it will restate its financial results for the three fiscal years ending in 2002.

The restatements will increase the medical products company's pretax loss for fiscal 2002 and fiscal 2001 by about $70,000 and $130,000, respectively, and will increase Zila's pretax income for fiscal 2000 by about $690,000.

In addition, Zila's shareholders' equity will be reduced by approximately $1.9 million.

All of the restatements involve the timing of recognition of revenues and expenses.

Zila also noted that the SEC is reviewing its impairment analysis related to approximately $5.4 million of purchased technology rights pertaining to certain Tolonium Chloride technology and assets. The company expects to resolve this issue with the SEC before it files its annual report, which could result in an additional restatement or adjustment.

Douglas D. Burkett, who was elected CEO and president of Zila in June and elected chairman of the board last month, said: "Zila is committed to conservative accounting, full, clear disclosure of all relevant information and integrity in everything we do."

SEC to Name Head of Accounting Board Today
Election day comes early this year. In October.

Today, the Securities and Exchange Commission is expected to conduct a public vote on who will head the newly created Public Company Accounting Oversight Board (PCAOB).

The two leading candidates: former FBI Director William Webster and former TIAA-CREF Chairman John Biggs, according to published reports.

Both men have their critics.

Webster is 78 years-old, and has little or no accounting or finance background. Of course, judging by the work of previous accounting oversight boards, it's not entirely clear whether an accounting background is a big plus when it comes to overseeing the industry.

Biggs, on the other hand, is heavily supported by Democrats. Many Republicans oppose his selection because they believe he is an accounting hawk.

Bloomberg said Friday's meeting was called by SEC Commissioner Harvey Goldschmid, who wants the selection of the accounting board's five members to take place in an open session.

Congress has required the board to be filled by Monday.

"Voting in an open meeting will help Biggs," Douglas Carmichael, director of Baruch College's Center for Integrity in Financial Reporting, told the wire service. "Commissioners will be held more accountable by the public, and it will be tougher to vote against an investor advocate like Biggs and for someone like Webster who lacks a strong accounting background."

Give This CFO a Gold Watch
Chief financial officer James G. Stewart is retiring from Cigna.

Stewart is a bit of a throwback. He's a career Cigna employee, having spent the last 36 years with the insurer. In fact, he's served as the company's CFO for nearly two decades -- never venturing out to take over as CEO at a smaller company. Stewart will officially leave the insurer in December.

Michael W. Bell was named to succeed Stewart. Bell has served in financial, actuarial and operational roles of increasing responsibility during his 18 years with the company.

Stewart was elected executive vice president and CFO of Cigna in 1983. He joined Connecticut General Life Insurance in 1966. Connecticut General combined with Insurance Company of North America to form CIGNA in 1982.

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