SEC Charges PACCAR, PFC for Accounting Deficiencies

The Securities and Exchange Commission announced it charged commercial truck manufacturer PACCAR and its subsidiary, PACCAR Financial, for various accounting deficiencies that clouded their financial reporting to investors in the midst of the financial crisis.

The SEC alleges that PACCAR’s internal accounting controls included ineffective procedures that kept the company from adhering to various accounting rules. PACCAR failed to report the operating results of its aftermarket parts business separately from its truck sales business as required under segment reporting requirements, which are in place to ensure that investors gain the same insight into a company as its executives.

PACCAR and its subsidiary also failed to provide complete information about their respective loan and lease portfolios, and PACCAR overstated some loan and lease originations and collections at two foreign subsidiaries in its statement of cash flows.

PACCAR and its subsidiary PACCAR Financial agreed to settle the SEC’s charges.

To read the SEC news release click here.

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