PACCAR facing SEC fine for accounting glitch
The SEC’s complaint further alleges that PACCAR and PACCAR Financial Corp. failed to maintain accurate records of impaired loans and leases, causing the company to improperly identify and disclose loans and leases for impairment. As a result, the SEC claims the company understated the amounts of their impaired receivables and the specific reserve associated with the receivables in footnotes to their respective 2009 Form 10-K filings.
PACCAR, according to the Commission, understated the amount of its impaired receivables by 65 percent and the amount of the specific reserve associated with the receivables by 78 percent. PACCAR Financial Corp. understated the amounts by 64 percent and 37 percent. As a result, PACCAR also made inaccurate statements to the SEC’s Division of Corporation Finance regarding its processes for calculating the specific reserves on its impaired receivables, the complaint charges.
Also according to the SEC’s complaint, PACCAR also overstated equal and offsetting amounts in two lines within its statement of cash flows in the second and third quarters of 2009. The company identified the errors during the first quarter of 2010 and reported corrected figures in its second and third quarter filings in 2010.