ADM disclosed it will be late in filing its annual report for 2023 as it continues to investigate potential accounting improprieties regarding its nutrition reporting segment.
The food processing company filed with the Securities and Exchange Commission (SEC) on Friday that it expects to submit its report by March 15, which is when its extension window would close. The company said its financial statements included in the report and its assessment of internal control over financial reporting (ICFR) require additional time to complete.
At this time, ADM said it anticipates reporting a material weakness in its ICFR related to its accounting practices and procedures for intersegment sales in its nutrition reporting segment. The company said it is developing a plan to remediate the apparent issues.
“The company anticipates correcting certain intersegment sales reported in the segment and geographic information footnote to the company’s consolidated financial statements that were not recorded at amounts approximating market,” it said. “Because each such sale occurred between the company’s reporting segments, the company does not anticipate an impact to the company’s consolidated balance sheets, statements of earnings, comprehensive income (loss), or cash flows.”
In January, ADM announced it placed its chief financial officer on leave amid the probe into its accounting practices, which began in response to a voluntary document request by the SEC.
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