Boeing under investigation by Securities and Exchange Commission

Airline Industry Information, Oct 22, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

US aircraft manufacturer Boeing has admitted that it is one of a handful of companies being investigated by the US Securities and Exchange Commission (SEC) over suspect accounting practices involving pensions and retiree healthcare plans.

Boeing said that it is cooperating fully with the SEC's investigation and believes that its accounting policies in relation to pensions, healthcare and in all areas of its business comply with SEC regulations. The Chicago-based company did however admit that at this stage in the investigation it did not know what conclusions the SEC would draw.

The SEC is investigating several companies including General Motors and Northwest Airlines over whether changes in pension plans can create reserve funds to be used if the company hits a difficult financial period which the SEC claims would be misleading to investors, reports The Associated Press.

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