Financial Accounting Blog

Wednesday, September 03, 2003

New Accounting Issues Derail a Filing. Article from about Symbol Technologies delaying the release of their annual report indefinitely due to accounting problems uncovered by external auditors. Problems relate to irregularities in the exercise of stock options by the company's executives, and to the way in which revenues from two types of transactions were being made by the company.
More trouble for Symbol Technologies Inc., the bar-code giant, which is already restating five years of financials and is being investigated by at least two government agencies, Friday said it will delay releasing its 2002 annual report due to 'two significant accounting issues.'

Symbol had planned to file its annual report by the end of August, but the company now maintains that it is impossible to commit to a timetable. The first new significant issue is related to the exercising of stock option; the second is related to the revenue recognition for two types of transactions occurring during the restatement period.

'Due to the unique nature of the stock option exercise issue, we are working together with the company's external auditors, as well as the staff of the SEC, to determine the appropriate accounting treatment for the company's stock option plans,' said chief financial officer Mark Greenquist in a statement. 'In addition, we are working with our external auditors to resolve the revenue recognition timing matters.'