US companies to certify accounts today

Nearly 1,000 chief executive officers of major companies in the US have until 10 p

Nearly 1,000 chief executive officers of major companies in the US have until 10 p.m (GMT) this evening to certify their financial statements with the Securities and Exchange Commission (SEC).

Most companies are expected to file the statements after reviewing their figures and consulting with their lawyers for weeks.

Already, following the review, the Interpublic Group of Companies announced a modest earnings restatement yesterday.

Several companies that are now doing large-scale reviews of their accounting — including WorldCom, Qwest Communications International and CMS Energy — have said they will not fulfill the order.

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The certifications, intended to reassure investors, have caused confusion because several new rules will come into play at the same time, one of which threatens up to $5 million in penalties and 20 years in prison for executives who sign false statements.

However, if an executive simply fails to file, the punishment is not specified.

The SEC issued the order last June, following revelations that energy-giant Enron had been issuing false financial statements.

According to the order, 947 of the largest companies in the US will be affected, 700 of whom face a deadline today, based on their fiscal years.

It may take up to a week for the agency to review and sort the filings, which are not made electronically, the agency said. By yesterday afternoon, about 300 companies had filed certificates.