Financial Accounting Blog

Thursday, April 22, 2004

A December article that announced the possibility of Goodyear having to restate several years of earnings for roughly $100 million became a little more clear this week as the tire giant announced that it had been cut some slack by its lenders, but would still be announcing several major adjustments due largely to major accounting errors overseas. The new information, also reported at, is that in addition to the adjustments announced in the Fall, other numbers will have to be adjusted.
Goodyear also announced that it will make additional adjustments to those disclosed in September, paring earnings by a total of about $65 million between 1997 and 2003. That figure includes $10 million related to the investigation, $20 million related to workers' compensation claims, $10 million to fixed assets, $8 million to product liability, $7 million to inter-company profit elimination in inventory, and $10 million to other items.