Jun 27, 2005 (01:06 PM EDT)
IBM Pledges To Comply With Informal SEC Investigation
Read the Original Article at InformationWeek
SAN FRANCISCO IBM Corp. said Monday (June 27) it would voluntarily comply with a U.S. Securities and Exchange Commission (SEC) investigation into disclosures relating to its first quarter earnings and expensing of equity compensation.
IBM said it was informed by the SEC that the informal investigation is not an indication that the company has violated any laws.
"We have no reason to believe at this time that the [first quarter earnings and equity compensation reports] are inaccurate," a spokesperson for IBM said Monday.
IBM was among the first companies to comply with the Financial Accounting Standards Board's new guideline for expensing stock options, something that the SEC had initially planned to require of companies as of June 15. But the SEC announced on April 15 that it would delay implementation of the new accounting rules by six months.
Ironically, the SEC's announcement that it would delay the implementation of the rules, known as SEC Statement No. 123R, came one day after IBM announced lackluster first quarter results.