Apple Computer Inc. said on Thursday it would likely need to restate earnings and will delay filing its quarterly report because of additional irregularities it found in its accounting of stock options and its shares fell 6.6 percent.
Apple first announced on June 29 that it was conducting an internal probe into irregularities related to stock option grants, hired an independent counsel to conduct its own investigation of the irregularities and notified the U.S. Securities and Exchange Commission.
Apple, maker of the iPod digital music player and Macintosh computer, is now among the most high-profile companies caught up in a stock options scandal that has swept through the technology industry. The SEC has more than 80 investigations underway to determine if companies manipulated the prices of stock options given to executives.
Cupertino, California-based Apple will likely need to restate results to record noncash charges for compensation expense relating to past stock option grants. Apple said it had not determined the amount of the charges, resulting tax and accounting impacts, or which periods may require restating.
Apple also said in a SEC regulatory filing Thursday that all financial communications issued since Sept. 29, 2002, should not be relied upon. The irregularities are related to the issuance of stock option grants made between 1997 and 2001.
News source: Reuters
