Computer manufacturer Dell will restate its accounts for the past four years after admitting figures were altered so that it could meet earnings targets.

Dell said the changes will shave about one per cent off its previously reported sales and about $150m (£75m) from net profit.

The company is subject to a US Securities and Exchange Commission investigation into accounting and financial reporting practices. Dell began its own enquiry and found significant accounting errors and irregularities, from 2003 onward, relating to the attainment of financial targets.

The biggest changes are likely to be in the first quarter of 2003 and second quarter of 2004 but are unlikely to have a significant effect on Dell’s balance sheet, said chief financial officer Donald Carty.

‘The rigorous examination of our accounting and finance processes, along with the remedial actions taken and planned, have made and will continue to make Dell a far stronger company and provide a solid foundation on which to move the business forward,’ he said.

Dell is making changes to the structure of its financial department, processes, leadership and staff.

The company has struggled to meet financial targets in recent years and is in the process of cutting 7,000 jobs, or 10 per cent of its global workforce, to tackle falling sales and rising costs.

While the adjustments are unlikely to affect its balance sheet, it will put a stain on Dell’s ethical standing and integrity, said Ovum analyst Ian Brown.

‘The investigation identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets, typically at the close of a quarter,’ he said.

‘Moreover, there was evidence that account balances were reviewed, sometimes at the request or with the knowledge of senior executives. So it could be a classic case of giving the bosses what the bosses wanted to see.’

But while some Dell customers will undoubtedly be uncomfortable with this example of dishonesty, the actual impact on Dell appears minimal and it is still a leading PC and server supplier, said Brown.