Computer Associates Says It's Unaware Of Probe
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ISLANDIA, NEW YORK, Feb 20, 2002 (Newsbytes via COMTEX) -- Computer Associates [NYSE:CA] says that, if its accounting practices are being investigated by federal prosecutors, it's news to officials at the company's Islandia, N.Y., headquarters.
Responding to press reports that an assistant U.S. attorney for the Eastern District of New York had begun a probe of the way the software giant logs revenue and profit, Computer Associates issued a statement early today saying it had no knowledge of any investigation.
"We have not been contacted by the authorities regarding any investigation and do not know what, if anything, is being investigated," the company said. "The reporting of our financial results has always been in accordance with all applicable accounting principles."
Two New York newspapers, Newsday and the New York Times, reported that the U.S. attorney's office may want a closer look at Computer Associates' brand of pro forma financial reporting.
Many companies report pro forma results that they say help investors to better gauge financial performance by making adjustments for such events as the sale or acquisition of business units, extraordinary gains or losses on investments and changes in methods of accounting for revenue and expenses. |
