IBM Avoids SEC Penalty Over Accounting of Cloud Computing
June 3, 2014
Grazed from WSJ. Author: Spencer Ante.
International Business Machines Corp. IBM appears to have sidestepped any government penalty over its accounting treatment for cloud computing. The computer maker said the Securities and Exchange Commission’s division of enforcement has concluded its investigation into how IBM reports cloud-computing revenue, according to a company filing with the SEC.
Based on the information to date, the division doesn’t intend to recommend any enforcement action by the SEC against IBM, the filing says. A SEC spokeswoman declined to comment. Last July, IBM disclosed that the SEC was investigating the way it reported its sales in its cloud-computing business, according to a filing detailing its second-quarter results…
At the time, IBM said it was confident that the information it provided was consistently accurate, and that it reports its cloud revenue in line with generally accepted accounting principles, the most common standard used by companies in the U.S…
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