BusinessCompany NewsUS software group restates nine years of accounts

US software group restates nine years of accounts

Errors found in stock option accounting

BEA, the US-listed business software maker,
has been forced into a major accounting restatement going back nearly ten years
after a review found that most of the
stock options it
granted from June 1997 to June 2006 had inappropriate accounting dates and
compensation expenses that were not recorded.

The company said it expects to restate financial statements from fiscal 1998
to fiscal 2007, and to record pretax noncash compensation expense of
$340m (£170m) to $390m (£195m), with the majority of this expense relating to
grants made in the fiscal 1999 to fiscal 2002 period.

A number of top executives, including chief executive Alfred Chuang, have
voluntarily agreed to repay all after-tax gains realized as a result of
mis-priced options, BEA said.

Further reading:

Backdating comes to the fore

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