The Securities and Exchange Commission has settled charges with four former finance executives of SmartForce related to the software company's overstatement of revenue and income.

SmartForce, now part of e-learning software developer SkillSoft, was charged with overstating revenue by $113.6 million and net income by $127 million during a three-year period ending in mid-2002. The commission complained that SmartForce's financial statements failed to comply with GAAP because the defendants improperly recognized revenue from various kinds of transactions, including multiple-element arrangements, reciprocal transactions and reseller agreements.

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