TORONTO, April 4 -- Xerox Canada Inc. has begun a process to determine whether restatements of its financial reports are required following a previously announced agreement in principle reached by its controlling shareholder, Xerox Corporation, and the Division of Enforcement of the U.S. Securities and Exchange Commission.
The agreement in principle, subject to approval of the Commission, calls for a restatement of Xerox Corporation's financials for the years 1997 through 2000 as well as an adjustment of previously announced 2001 results. Xerox said that the restatement will primarily reflect adjustments in the timing and allocation of lease revenue recognition and could involve a reallocation of equipment sales revenue.
The resulting timing and allocation adjustments cannot be estimated until the restatement process has been completed. In any event, there will be no impact on the cash that has been received or is contractually due to be received from these leases. Furthermore, the monetary value of the leases does not change.
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