SEC Probes Cloud Accounting Practices At IBM
The Securities and Exchange Commission is scrutinizing how IBM reports revenue generated by its multibillion-dollar cloud computing services operation. IBM disclosed the SEC probe in its second-quarter 2013 quarterly report filed this week with the SEC.
IBM issued a statement saying it's cooperating with the investigation and the company stands by its accounting practices.
Observers said there aren't enough details to determine whether the investigation would have any material effect on IBM's past financial results or its cloud business going forward. IBM has said it expects that business to grow to $7 billion by 2015.