The Securities and Exchange Commission has launched a formal investigation into an accounting change made by IBM in 2005.
Last April, IBM voluntarily made the change to start deducting the cost of employee stock options from its profits, an accounting rule that now applies to all U.S. companies. The SEC is concerned that the change may have been a way of disguising a lackluster first quarter.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access