Summary
Quanta Services, Inc. (PWR) announced on November 8, 2006, that it would restate its previously issued financial statements for the fiscal years ended December 31, 2004, and 2005, and the interim periods within those years. This restatement is due to the company's conclusion that certain accounting treatments related to revenue recognition and the accounting for long-lived assets and related impairments were improper. Specifically, the company identified issues with contract accounting, including the timing of revenue recognition, and incorrect accounting for assets held for sale and impairments of long-lived assets. This announcement triggers a "non-reliance" event under SEC regulations, requiring the company to inform the market of the issue.
Key Highlights
- 1Quanta Services, Inc. will restate its financial statements for FY 2004 and 2005, including interim periods.
- 2The restatement is necessitated by improper accounting for revenue recognition.
- 3Issues were also identified in the accounting for long-lived assets and related impairments.
- 4The company has identified specific problems with contract accounting and asset classification.
- 5The announcement is made under Item 4.02(a) of Form 8-K, indicating a non-reliance on prior financial statements.
- 6The company is working with its independent auditors to complete the restated financial statements.