AES will restate prior results to correct errors in its financial statements. The utility uncovered many of these errors during it continuing remediation of previously identified material weaknesses; others came to light during the company’s quarterly and year-end accounting reviews.
“The company believes that all errors which have been identified to date were inadvertent and unintentional,” AES stressed, in a statement.
Though AES has not determined the extent of the revisions, the company does not believe they will be material.
The announcement comes an unlucky 13 months after the company’s $556 million restatement in January 2006; another restatement, last April, put it in default under its senior bank credit facility.
The company pushed back the release of its fourth-quarter and full-year 2006 financial results and its earnings conference call, originally scheduled for Tuesday, and will seek extra time to complete its 2006 annual report, which it now plans to file March 16.
AES also announced the retainer of a consulting firm to review its accounting for long-term compensation, including restricted stock units and stock options. The company warned that since it has generally treated the board approval date as the accounting measurement date — rather than using the date that awards were finalized, or communicated to employees — it is likely that the company incorrectly calculated its share-based compensation expense. Again, however, AES emphasized that it does not believe these accounting errors “are the result of any fraudulent practice.”