PracticePeople In PracticeCA blames typo for £97m error

CA blames typo for £97m error

Computer Associates (CA) has blamed a typographical error for misrepresenting its profits by some $140m (£97m).

In a statement issued on 16 April, the firm claimed that it generated profits of about 40 cents a share, around $230m (£160m), for the 12 months to 31 March 2001. But a later revised statement posted last week altered this figure to 16 cents a share, or $90m (£130m).

According to a report in the New York Times, CA said the mistake occurred when the person who prepared a chart for the statement inserted the wrong number from a spreadsheet.

The newspaper published an article this weekend which quoted former employees and analysts as saying that CA had a long history of using accounting manoeuvres to overstate profits, a charge that CA has denied.

Last year, the company changed an initial statement that it made revenues of $2.13bn (£1.5bn) to $1.91bn (£1.3bn) after including some contracts that had been signed in the previous three months, but had already been included in previous figures.

Links

CA denies accounting ‘tricks’ allegation

Related Articles

Is inefficiency stealing your time and money?

Accounting Firms Is inefficiency stealing your time and money?

6m Emma Smith, Managing Editor
CIMA elects new president

Institutes CIMA elects new president

6m Emma Smith, Managing Editor
Transparent currency trade: How to achieve costs visibility

Governance Transparent currency trade: How to achieve costs visibility

6m Emma Smith, Managing Editor
Introduction to KPMG UK’s new leadership team

Accounting Firms Introduction to KPMG UK’s new leadership team

6m Emma Smith, Managing Editor
EY appoints head of UK Infrastructure Asset Intelligence practice

Accounting Firms EY appoints head of UK Infrastructure Asset Intelligence practice

8m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
MHA MacIntyre Hudson advises on management buy-out

Accounting Firms MHA MacIntyre Hudson advises on management buy-out

10m Emma Smith, Managing Editor