Saturday 16 December 2017

IBM being investigated over Irish, UK and US accounting by SEC

IBM's New York offices

Jing Cao

IBM is being investigated by US markets regulator the Securities and Exchange Commission (SEC) over its accounting treatment of revenue in three countries including Ireland.

The technology giant said last night that it learned in August that the SEC is looking into the accounting treatment of certain transactions in the US, the UK and Ireland, according to a regulatory filing.

Shares in IBM fell around 3pc in the immediate wake of the news.

IBM said in the filing that it is cooperating with the SEC.

"IBM has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue," Ian Colley, a company spokesman, said in a statement.

"We are confident that the results and information we report have been appropriate and consistent with GAAP."

Last year the same company said the SEC didn't plan to recommend an enforcement action after investigating how IBM reported revenue from offsite cloud services.


Irish Independent

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