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DENVER—Qwest Communications International Inc. reported it would potentially reduce the carrying value of goodwill by an estimated $20 billion to $30 billion as a result of an accounting rule change. In addition, the accounting change will eliminate any further amortization of goodwill, which is expected to reduce amortization expense by approximately $900 million this year and beyond.
The telecommunications provider also announced the Securities and Exchange Commission has recommended action against Qwest for not reporting certain information related to its acquisition of US West Inc. in a fourth-quarter 2000 earnings report.
Qwest said the SEC action was without merit and that it “remains a very strong company with solid revenue.”
