ConAgra reassesses financial figures

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Related tags: Revenue, Generally accepted accounting principles, Income, Conagra

ConAgra, the US agribusiness and food products group, said it would
have to restate its figures because of accounting irregularities
which are being probed...

ConAgra, the US agribusiness and food products group, said it would have to restate its figures because of accounting irregularities which are being probed by the US Securities & Exchange Commission, the Financial Times reports. The problems are connected to the United Agri Products Companies unit, one of three businesses that make up the Omaha-based group's agricultural products division. The subsidiary, which distributes seed, fertiliser and agricultural chemicals, has accounted for about 13 per cent of group sales and 9 per cent of operating profit in recent years. ConAgra said that it first began to look at issues of when and how revenues were being recognised at UAP last autumn. Separately, ConAgra said, it was notified by the SEC last autumn that the agency was also examining accounting matters at UAP. According to ConAgra, the subsequent investigation showed breaches of accepted accounting standards in three areas - the recognition of deferred delivery sales and advance rebate income, and accruals for bad debt reserves. As a result, revenues and pre-tax profits are being restated at slightly lower levels for the 1998, 1999 and 2000 fiscal years, but will be slightly higher in 2001. Earnings per share in 1998 will now be $1.32 a share, compared with a previous figure of $1.35; in 1999, $1.41 against $1.46; in 2000, $1.60 versus $1.67; and in 2001, 15 cents higher. Source: Financial Times

Related topics: Market Trends

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