View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Hardware
October 28, 2015

IBM’s accounting practices under SEC scrutiny

News: Company did not disclose the details of the SEC probe.

By CBR Staff Writer

The US Securities and Exchange Commission is investigating IBM’s accounting practices in regards to certain transactions.

IBM said that it came to know about the investigation in August, which is focused upon revenue recognition with respect to certain deals that took place in the US, Britain and Ireland.

The company did not disclose the details of the deals that were being probed, but said that it is cooperating with the SEC.

Reuters quoted IBM spokesman Edward Barbini as saying that the company "has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue."

The company posted a huge drop in third-quarter revenue and cut its full-year profit forecast last week as a stronger US dollar led to weak demand in China and other emerging markets.

IBM has been a subject of several SEC probes in the past, which includes an investigation that took place in 2013 on how it reported revenue from cloud computing business.

The regulators later decided not to take any action following the investigation.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

In 2011, IBM charged with violating the books and records and internal control provisions of the Foreign Corrupt Practices Act of 1977 ("FCPA") for providing improper cash payments, gifts, and travel and entertainment to government officials in South Korea and China.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU