More Financial Troubles

(Denver-AP) -- Qwest is reversing 950 million dollars in revenue it had booked from swaps of capacity on its fiber-optic network.

The Denver-based telecom company made the announcement yesterday and said it may have to adjust another 531 million in revenue from cash sales of optical capacity assets to third parties.

The 950 million dollar restatement is from so-called swaps in which Qwest nearly simultaneously bought and sold network capacity with another telecommunications company.

Qwest said the revenue was based on accounting policies approved by its former auditor, Arthur Andersen.

The Securities and Exchange Commission is investigating whether the swaps helped Qwest artificially boost revenues. Qwest also is the subject of a Department of Justice investigation.