Troubled US telecoms group Qwest is to write down the value of its assets by almost $35 billion as it cleans up its financial statements. It is one of the companies hit by an accounting scandal that resulted in the resignation of its chief executive Joe Nacchio and an investment by the Securities and Exchange Commission and the Department of Justice.
The company expects to write down the value of goodwill on its balance sheet by $24 billion and its network assets by $10.8 billion as part of a restatement of accounts. It is also to defer $531 million in revenue relating to the sale of telecoms capacity that had been recognised in previous years and to write off $120 million of revenues that had been part of its wireless division in 2000 and 2001.
29-Oct-2002
