Japanese electronics giant NEC has settled with the U.S. Securities and Exchange Commission over charges that it improperly booked revenue from its customer contracts and did not maintain accurate books and records, causing the company to miss filing financial statements two years in a row.

The SEC said that for fiscal years 2000 through 2005, NEC filed annual reports that misstated revenues, net income or net loss. NEC improperly recognized revenues from contracts with customers that included the provision of hardware, software, and customer support, according to the SEC. The company should have deferred a substantial portion of these revenues pending future performance in accordance with U.S. generally accepted accounting principles.

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