The company announced the potential restatement last month.
Enron still has not filed its financial statement for 2001 so further restatements are likely.
Over the last four years, nearly one in five accounting restatements -- red flags for potential misconduct -- have been by companies in California, according to a study by Arthur Andersen, the accounting firm.
However, given the developmental nature of nanotechnology, the knowledge of hazard potential will change over time and require restatement and possibly modification of guidance.
Any potential earnings changes as a result of the restatements will be determined after the company completes tax expense calculations for the affected periods.
"A trade secret is any information that can be used in the operation of a business or other enterprise and that is sufficiently valuable and secret to afford an actual or potential economic advantage over others" (U.S. Legal Code, The Restatement (Third) of Unfair Competition, 1995, §39).
He also attributed the sharp increase in corporate restatements and the sharp decline of Silicon Valley stocks to potential conflicts of interest at auditing firms that did accounting and consulting work for the same clients.
This is often a restatement of the leading statement or a statement indicating potential future developments relating to the article topic.
He sees significant potential upside for the shares, if, as he expects, the company completes its financial restatement and Pricewaterhouse Coopers signs off with only a relatively small proportion of revenue being affected, removing an overhang.
Over 100 took accounting restatements.
