NEW YORK (CNN/Money) -
Telecommunications company WorldCom. Inc. said Monday the Securities and Exchange Commission has asked for a range of financial information, including some related to its accounting procedures and loans to corporate officers.
The Clinton, Miss.-based company -- whose consumer long-distance unit is No. 2 in the US, behind AT&T -- said it is not aware of information that would prompt an SEC inquiry and it is complying with all the regulatory agency's requests.
Specifically, WorldCom (WCOM: down $0.18 to $9.01, Research, Estimates) said the SEC is seeking information related to:
- a pre-tax charge the company took against its third-quarter 2000 earnings associated with wholesale accounts;
- disputed customer bills and sales commissions;
- WorldCom's accounting policies for goodwill and implementation of FAS 142, an accounting rule under which public companies mush no longer automatically amortize, or write down, goodwill over a maximum of 40 years. Goodwill is the amount paid for a business that exceeds its fair market value;
- WorldCom's organizational charts and personnel records for former employees;
- loans by WorldCom to officers or directors;
- the integration of WorldCom and MCI's computer systems;
- WorldCom's tracking and review of analysts' earnings estimates;
- and any federal or state agency investigations of WorldCom.
In a brief statement, the company said it believes all of its policies, practices and procedures have complied, and continue to comply, with all applicable accounting standards and laws.