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Further finance woes hit Xerox

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Xerox has restated its earnings for the period of 1997 through to 2000 as well as further adjustments to 2001 figures of 1.2bn ($1.9bn) compared to its original figures

The restatement is a result of its settlement with the US Securities and Exchange Commission (SEC) in April. It was required due to the way the firm had booked service, rental and finance charges.

Coming hot on the heels of other accounting irregularities at American firms, it sent Xerox’s shares opening on Friday morning 12.5% under their closing price of £5.25 on Thursday, before falling further to a low of £4.

The firm attributed the majority of the figure to changes in the method of accounting for leased equipment in Latin America.

Story by Barney Cox