Troy, MI, March 25—-Automobile carpet and interiors company Collins & Aikman Corp. said its Audit Committee has retained independent counsel to assist it in its investigation of the company's accounting for certain supplier rebates.
The company said the committee has retained Davis Polk & Wardwell and expects to retain other advisers, including an accounting expert, as appropriate.
The company said it previously disclosed certain accounting for supplier rebates led to premature or inappropriate revenue recognition, or was inconsistent with relevant accounting standards.
An internal review examined about $88 million of vendor transaction in its fiscal 2002-2004, which will require adjustments of about $10 million to $12 million, the company said.
The company said it expects to restate results for the nine months of its fiscal year that ended Sept 30 and is evaluating 2003 results.
