Intuit Inc. says that it properly accounted for past stock options awarded to its employees and it shouldn't need to restate past profits.
Intuit -- which makes the TurboTax and Quicken software programs -- announced that it was in the process of conducting an internal investigation of the handling of its stock options dating back to 1997. Intuit announced its own review in June, after revealing that it had received an informal inquiry from the Securities and Exchange Commission regarding its stock option-granting practices.
Another major name in the software industry -- security company McAfee Inc. -- also announced this week that it had found discrepancies in the dating of some stock option grants and that it will likely make financial restatements in the future. McAfee said a special committee found actual accounting measurement dates for some historical stock options differed from the measurement dates previously used for such awards. As a result the company said that its financial statement for the fiscal first quarter of 2006, its annual reports for fiscal years 2005, 2004, 2003, and data for fiscal 2002 and 2001, should no longer be relied upon.
At least 108 companies have reported federal government or internal investigations to determine whether they improperly backdated options grants to inflate their value to executives, according to data compiled by Bloomberg News. Many companies involved have delayed quarterly financial reports and some have said they would restate past results to reflect options costs.
Previously on WebCPA:Intuit Part of SEC Options Probe; Symantec Settles with IRS (June 13, 2006)
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