Great Western Financial Corp. earnings declined to...
Great Western Financial Corp. earnings declined to $56.1 million for its first quarter from $89.4 million for the year-ago period, the company reported. The nationwide financial services company, based in Beverly Hills, said that prior-period and per-share earnings have been restated to reflect the implementation of a new accounting policy. FAS 91 requires that loan origination fee income, minus direct costs, be amortized rather than recorded in the period in which the loan originated. Earnings were reduced by $72 million as a result of the change but will be restored to operating income in future periods, the company said.
For the record:
12:00 a.m. April 21, 1988 FOR THE RECORD
Los Angeles Times Thursday April 21, 1988 Home Edition Business Part 4 Page 2 Column 6 Financial Desk 2 inches; 40 words Type of Material: Correction
It was incorrectly reported Tuesday that a $72-million reduction in Great Western Financial’s earnings was a result of a tax-accounting change. The reference should have been to “retained earnings,” which reflect shareholder equity, not the first quarter’s financial results.
