Alibaba Unit’s Accounting Flaw Seen Drawing SEC Scrutiny

Alibaba Group Holding Ltd.’s planned initial public offering may face added scrutiny from U.S. regulators after accounting irregularities at its film unit, although the share sale is unlikely to be delayed.

Alibaba Pictures Group Ltd. uncovered possible accounting flaws and won’t be able to publish its mid-year results on time, it said yesterday. The Hong Kong-listed media company appointed a new chief executive officer this month, after Alibaba acquired 60 percent of it for about $800 million.