In 1994, after its auditor Arthur Andersen discovered these practices, management allegedly agreed to write off $40 million related to dead projects over a span of 10 years, and also promised to write off future impairments and abandonment in a prompt manner. However, during 1994, 1995, 1996, and 1997, management effectively buried the write-offs related to abandoned and impaired projects by netting them against other gains, as opposed to identifying the costs separately as it had promised Andersen.
dead projects