Summary
This 8-K filing by Commonwealth Edison Company (ComEd) reports on significant changes in its auditing and accounting practices following a major merger. On October 20, 2000, PECO Energy and Unicom Corporation merged to form Exelon Corporation. Consequently, ComEd, formerly a subsidiary of Unicom, became a subsidiary of Exelon. Following this corporate restructuring, Exelon's Board of Directors, with the approval of its Audit Committee, appointed PricewaterhouseCoopers LLP (PwC) as the independent accountant for Exelon and its subsidiaries, including ComEd, effective immediately on November 28, 2000. This appointment led to the dismissal of Arthur Andersen LLP, which had been ComEd's certifying accountant. The filing also details prior consultations ComEd had with PwC regarding specific accounting treatments for certain transactions, with Arthur Andersen concurring on these treatments.
Key Highlights
- 1Commonwealth Edison Company (ComEd) is now a subsidiary of the newly formed Exelon Corporation, following the merger of PECO Energy and Unicom Corporation.
- 2Exelon Corporation has appointed PricewaterhouseCoopers LLP (PwC) as its new independent accountant for itself and its subsidiaries, including ComEd.
- 3Arthur Andersen LLP has been dismissed as the certifying accountant for ComEd, effective November 28, 2000.
- 4The change in auditors was approved by Exelon's Board of Directors and its Audit Committee.
- 5Arthur Andersen's reports on ComEd's financial statements for the past two years and interim periods did not contain adverse opinions or modifications.
- 6There were no disclosed disagreements between ComEd and Arthur Andersen on accounting principles, financial statement disclosures, or auditing procedures.
- 7ComEd had previously consulted with PwC on the accounting treatment for two specific transactions, receiving favorable written advice that Arthur Andersen also concurred with.