General Electric will restate its earnings for 2016 as well as 2017 as This particular adopts a fresh accounting standard, according to a regulatory filing Friday.
The updated accounting standard, which will take into account revenue via long-term contracts, will result in a 13 cent cut in reported earnings per share for 2016 as well as a cut of 16 cents per share for 2017, according to the company’s 10-K filing.
The company will restate earnings when This particular reports 2018 results, GE said within the filing. GE reports first-quarter earnings on April 20.
GE will be adopting the fresh accounting standards as the Securities as well as Exchange Commission will be investigating GE over its accounting for long-term service contracts.
GE also will be facing potential legal action by the U.S. Department of Justice over allegations which its GE Capital unit as well as today-defunct WMC Mortgage Corp. unit violated U.S. law in connection with subprime mortgages, according to the filing.
The Financial Times first reported which GE plans to restate earnings.