IBM has admitted the US Securities and Exchange Commission (SEC) is probingsome of its transactions in the UK, Ireland and the US, prompting its share price to slump.
In a 10-Q document filed with the SEC last night, Big Blue said the investigation, which relates to revenue recognition, began in the summer.
"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 US, UK and Ireland," the filing said. "The company is cooperating with the SEC in this matter."
IBM's share price slumped about four per cent after the document was filed, according to reports.
In a statement sent to CRN, Big Blue added:
"IBM has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue. We are confident that the results and information we report have been appropriate and consistent with GAAP [generally accepted accounting practices]."
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