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KMART FINDS MORE ACCOUNTING ERRORS

Kmart executives announced last month that they had discovered additional accounting errors, forcing the company to restate its earnings over several years.

The discovery of the discrepancies, which delayed publication of the company’s third-quarter report until the third week of December, arose from changes the chain adopted last year in the way it records payments from its suppliers, and from a software problem that distorted the record of sales from one supplier, Kmart said.

Additional errors involved the understatement of past accruals for some store leases, and still others involved the recording of inventory.