“We are committed to achieving and maintaining a strong control environment, high ethical standards and financial reporting integrity. This commitment will be communicated to every Dell employee and external stakeholder. It is accompanied by renewed management focus on decision-making and processes intended to drive long-term shareholder value.”(Michael Dell, chairman and CEO)

The restatement will correct the accounting errors and irregularities that have been identified and is expected to have the following effects:
– net revenue for each annual period is expected to be reduced by less than 1%of the previously reported revenue for the period.
– the cumulative change to net income for the restatement period is expected to be a reduction of between $50 million and $150 million. The initial reported net income was of more than $12 billion
– the first quarter of fiscal 2003 and the second quarter of fiscal 2004 will feature the most drastic changes – between 10% and 13%; the fourth quarter of fiscal 2005 has expected reduction of around 7%; and the second quarter of fiscal 2005 and the third and fourth quarters of fiscal 2006, each with an expected increase of approximately 5% to 7% .

Still, Dell stated that the adjustments should not have a material impact on cash flows during the restatement period, nor a significant effect on the reported results of future operations.

In oder to prevent such further mishaps, the company announced that it would be reorganizing its Finance function. Accounting and financial reporting responsibility would be segregated from planning and forecasting so it would ensure increased independence. Also, the position of Chief Accounting Officer has been strengthened, and the CAO would be made directly responsible for all accounting and financial reporting functions worldwide.