18.09.2014 13:16:40
|
Penn West Petroleum Issues Results Of Internal Review Of Accounting Practices
(RTTNews) - Penn west petroleum ltd. (PWE, PWT.TO) said the Audit Committee determined that a review of prior periods going back to and including 2007 was necessary, including establishing the relevant January 1, 2012 opening balances for the restatement. The review did not identify any other accounting practices that were required to be addressed by the Company in the restatement.
The Review identified that certain operating expenses were reclassified to property, plant and equipment without adequate support and were determined to be incorrectly recorded as property, plant and equipment.
Reversing the capitalization of operating expenses results in adjustments of $11 million in the first quarter of 2014, $85 million in 2013 and $94 million in 2012 decreasing reported property, plant and equipment and increasing operating expenses.
As a result of these adjustments, depletion and depreciation expense, impairment charges, gains (losses) on dispositions and deferred income tax expense (recovery) have also been restated in the first-quarter 2014, 2013 and 2012, together with the effect of these items from prior periods on opening retained earnings as at January 1, 2012.
During 2014, before the accounting practices that led to the Review were brought to the new CFO's attention, the company said it began an unrelated restructuring of its accounting and finance departments. As a result of that restructuring, the senior finance and accounting personnel who were at the Company and involved in the adoption and use of the accounting practices that led to the restatement of its financial statements ceased to be employed by the Company.
The Review identified several material weaknesses and a significant deficiency in Penn West's internal control over financial reporting and control systems. In addition, Penn West's senior management, after conducting its own review, has concluded that Penn West has material weaknesses and a significant deficiency in its internal controls over financial reporting.
Dave Roberts, President and CEO, commented, "We addressed these issues head on and have made significant progress in resolving them. We will continue to treat this matter very seriously and are committed to ensuring that we avoid a similar situation in the future. What is very clear is that our production and operations have not been impacted, and the financial health of the Company continues to improve. With our restated historical and second quarter financial statements filed, we can now look forward to delivering on our targets set out in the Company's long-term plan. Our focus on reducing costs and increasing the cash generating capability of the enterprise through focused development of conventional light oil is unchanged."
On July 29, 2014, the Company publicly announced that the Review arose from certain accounting practices that came to the attention of the Company's new Senior Vice President and Chief Financial Officer, David Dyck, after he assumed that position on May 1, 2014. The Company's senior management then recommended to the Board that the Audit Committee conduct an independent review of these practices. The Company promptly informed its external auditors, KPMG LLP , of the Review and has kept KPMG informed as the Review has progressed.
Wenn Sie mehr über das Thema Aktien erfahren wollen, finden Sie in unserem Ratgeber viele interessante Artikel dazu!
Jetzt informieren!
Nachrichten zu Penn West Petroleum Ltdmehr Nachrichten
Keine Nachrichten verfügbar. |