IBM Under Accounting Investigation For Transactions in US, UK, and Ireland

IBM is under investigation by the United States Securities and Exchange Commission (SEC) for potentially dodgy accounting practices in regards to its transaction in the US and the UK.

“In August 2015, IBM learned that the SEC is conducting an investigation relating to revenue recognition with respect to the accounting treatment of certain transactions in the US, UK, and Ireland,” said IBM in its latest quarterly financial filing.

IBM has released no specific details about the investigation, but claims it has been cooperating with the SEC since August.


“IBM has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue,” the company told TechWeekEurope. “We are confident that the results and information we report have been appropriate and consistent with GAAP (Generally Accepted Accounting Principles).”

Earlier this month, IBM announced its 14th consecutive quarter of declining revenues and cut its full-year operating profit forecast.

The company attributed the revenue loss largely to a broad shift away from packaged software products to the cloud and, in the storage industry, a shift to cloud-based storage and to the flash memory typically used in mobile devices, and increasingly also in servers and laptops.

IBM attributed about 9 percent of the decline in overall revenues to a strong US dollar, a factor that has boosted recent results from European companies such as SAP.

Take our EMC quiz here!

Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

Recent Posts

Microsoft Executive Indicates Departmental Hiring Slowdown

Amid concern at the state of the global economy, a senior Microsoft executive tells staff…

2 days ago

Shareholders Sue Twitter, Elon Musk For Stock ‘Manipulation’

Disgruntled shareholders are now suing both Twitter and Elon Musk, over volatile share price swings…

2 days ago

Google Faces Second UK Probe Over Ad Practices

UK's competition watchdog launches second investigation of Google's ad tech practices, and whether it may…

2 days ago

Elon Musk Raises His Contribution To Twitter Acquisition

But one of Elon Musk's biggest backers on the Twitter board has tendered his resignation…

3 days ago

Broadcom Confirms VMware Acquisition For $61 Billion

Entry into cloud infrastructure software for US chip firm Broadcom after it confirms reports it…

3 days ago