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General Electric to restate two years of earnings

General Electric will restate its earnings for 2016 and 2017 as it adopts a new accounting standard, according to a regulatory filing Friday.

The updated accounting standard, which will take into account revenue from long-term contracts, will result in a 13 cent cut in reported earnings per share for 2016 and a cut of 16 cents per share for 2017, according to the company's 10-K filing.

The company will restate earnings when it reports 2018 results, GE said in the filing. GE reports first-quarter earnings on April 20.

GE is adopting the new accounting standards as the Securities and Exchange Commission is investigating GE over its accounting for long-term service contracts.

GE also is facing potential legal action by the U.S. Department of Justice over allegations that its GE Capital unit and now-defunct WMC Mortgage Corp. unit violated U.S. law in connection with subprime mortgages, according to the filing.

The Financial Times first reported that GE plans to restate earnings.