SEC probes IBM accounting

The Securities and Exchange Commission is probing whether IBM deliberately
expensed stock options to cloud the company’s performance.

The investigation is looking at IBM’s Q1 2005 results, which it has been
claimed were obscured by the inclusion of expensed stock options.

An informal investigation by US regulators began last year, but IBM confirmed
that a formal inquiry has been opened, and it would continue to provide

‘As previously disclosed in June 2005, IBM has been cooperating with the SEC
in an informal investigation of this matter, and will continue to do so,’ IBM
said in a statement. ‘The SEC has informed IBM that the investigation should not
be construed as an indication that any violations of law have occurred.’

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