SEC May Review Some Firms’ ‘98 Write-Offs

The Securities and Exchange Commission has informed more than 150 companies that it might review their 1998 write-offs for possible accounting violations. The companies were selected on the basis of news reports about significant charges they took against earnings last year, agency spokesman Duncan King said. The accounting reviews, part of a broad agency push to improve the quality of companies’ financial reports and accounting practices, could force some companies to restate their earnings. The SEC said in a letter to chief financial officers of the companies that it might scrutinize charges for asset write-downs, restructuring activities or unfinished research and development acquired in mergers. King declined to name any of the companies that will get the letter, saying “any time we review companies’ filings, it’s not public.”