Financial Accounting Blog

Monday, March 29, 2004

Restatements. reports that Key Energy (a Midland, Texas based oil well services company) is planning on restating last years results to correct mistakes regarding writedowns causing shares of Key to drop.
Key Energy said it believes $5 million of goodwill and other intangible assets from a 2003 acquisition by the company's South Texas division should have been charged to earnings. It said the value of the acquired business was misrepresented by employees involved in illegal activities at the unit.

The company also said it began civil litigation against the former employees and some third parties in an effort to recover its losses.