Qwest Communications is to restate approximately $950 million in revenue from its optical capacity asset transactions. The company may also restate up to $531 million in sales of optical capacity for cash. Qwest is currently undergoing a federal investigation into its accounting practices.
Qwest Communications has announced further restatement of its 2000 and 2001 financial statements as a result of its ongoing analysis of the complex accounting policies and practices relating to revenue recognition and accounting treatment for exchanges and sales of optical capacity assets (IRUs). In restating its 2000 and 2001 financial statements with respect to these matters to be in conformance with generally accepted accounting principles, the company will reverse $ 950 million in revenues and related costs related to exchanges of optical capacity assets previously recognized. Some of the transactions included in this restatement were the subject of the company’s July 28, 2002, announcement of determinations reached as of that date.