SEC probing ExxonMobil accounting: report
US securities regulators are investigating whether ExxonMobil boosted its financial statements with unrealistic accounting for low oil prices and the potential impact of climate mitigation policies, according to a report Tuesday.
The probe by the Securities and Exchange Commission into ExxonMobil's decision to not devalue assets due to crashing oil prices follows on a similar investigation by New York Attorney General Eric Schneiderman, according to the Wall Street Journal said.
ExxonMobil's Rivals, including Chevron and Royal Dutch Shell, have undertaken large writedowns that have led them to report quarterly losses over the last two years as oil prices have fallen.
The Journal said the SEC is also examining ExxonMobil's calculations of the potential impact of government policies to mitigate climate change on its future value.
That includes the question of whether the company is employing a realistic estimate for carbon pricing that could make conventional petroleum assets uneconomical to produce. An unrealistically cheap price for carbon might inaccurately boost ExxonMobil's financial reports.
The SEC declined to comment, and ExxonMobil did not immediately respond to a request for comment.
ExxonMobil has previously argued that it has employed realistic climate policies into its longterm planning.