Boeing is plunging after a report that the feds are investigating its accounting

The U.S. Securities and Exchange Commission is reportedly investigating Boeing Commercial Airplanes accounting practices, with respect to its 787 Dreamliner and 747 jumbo jet programs.

According to Bloomberg's Robert Schmidt, Julie Johnson and Matt Robinson, people with knowledge of the matter said that the SEC is looking into Boeing's projections for the long-term profitability of the two airplanes.

Boeing stock is down roughly 10% in morning trading.

"We typically do not comment on media inquiries of this nature," Boeing communications director Chaz Bickers said in a email to Business Insider.

SEC has declined to comment on the matter.

According to the Bloomberg report, the issue lies with a form of financial reporting called program accounting which allows Boeing to spread the costs of building its planes over a number of years. Although program accounting is allowed by the SEC for use in the aerospace industry, the report claims that critics say it allows Boeing to obscure potential losses.

The SEC's attorney's are looking to such issues as whether or not Boeing's financial statements relied upon overly optimistic sales projections, Bloomberg reported.

Thus far, sources tell Bloomberg that the SEC have yet to reach any conclusion on the matter and may ultimately not bring a case against Boeing.