IBM is under S.E.C. investigation over accounting
The Security and Exchange Commission is investigating IBM over how it records revenue on certain deals.
IBM disclosed the inquiry in a regulatory filing on Tuesday, saying: “In August 2015, IBM learned that the SEC is conducting an investigation relating to revenue recognition with respect to the accounting treatment of certain transactions in the U.S., U.K. and Ireland. The company is cooperating with the S.E.C. in this matter.”
An IBM spokesperson told Fortune the following: “IBM has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue. IBM is cooperating with the SEC in this matter.”
The S.E.C. declined to provide additional details.
Shares of IBM (IBM) fell 3.4% in mid-day trading Tuesday, following the disclosure.
The news comes just one week after IBM posted its latest earnings report in which Big Blue recorded its fourteenth straight decline in quarterly sales.
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