Filter
Top Products
F-17
communications and related accounting entries over multiple fiscal periods. In addition, the review of accruals and provisions and the
application of accounting literature to certain matters in the Second Restatement, including revenue recognition, foreign exchange,
special charges and discontinued operations, was complicated by the passage of time, lack of availability of supporting records and the
turnover of finance personnel. As a result of this complexity, estimates and assumptions that impact both the quantum of the various
recorded adjustments and the fiscal period to which they were attributed were required in the determination of certain of the Second
Restatement adjustments. Nortel Networks believes the procedures followed in determining such estimates were appropriate and
reasonable using the best available information.
The following tables present the impact of the Second Restatement adjustments on Nortel Networks previously reported consolidated
statements of operations and a summary of the adjustments from the Second Restatement for the years ended December 31, 2002 and
2001. The Second Restatement adjustments related primarily to the following items, each of which reflect a number of related
adjustments that have been aggregated for disclosure purposes, and are described in the paragraphs following the tables below:
• Revenues and cost of revenues;
• Foreign exchange;
• Intercompany balances;
• Special charges;
•Other;
• Reclassifications; and
• Discontinued operations.