Feb 25 (Reuters) - 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. (Reporting By Jessica Toonkel; Editing by Susan Thomas)