Paul Krill
Editor at Large

BEA dealing with accounting issues

news
Dec 22, 20061 min

BEA Systems is wrestling with stock option grant accounting issues, which also have plagued other companies such as Apple Computer.

BEA has missed two financial results filing deadlines in the past two quarters while it reviews its books over stock option issues. As a result of the missed deadlines, Nasdaq has threatened to delist the company from its stock exchange and has sent two notices. But BEA is confident it will not be delisted.

The company on December 4 reported that an internal audit committee had made a determination that, under applicable accounting principles, the actual measurement dates for certain stock options differed from the recorded measurement dates for such stock options. BEA said it expects that the difference in these measurement dates will result in material non-cash, stock-based compensation expenses.

BEA is one of 180 companies now going through the process of examining its stock option practices, said Eric Stahl, BEA director of investor relations.

Rules on accounting for stock option grants had been loosely defined in the past, Stahl said.

Paul Krill

Paul Krill is editor at large at InfoWorld. Paul has been covering computer technology as a news and feature reporter for more than 35 years, including 30 years at InfoWorld. He has specialized in coverage of software development tools and technologies since the 1990s, and he continues to lead InfoWorld’s news coverage of software development platforms including Java and .NET and programming languages including JavaScript, TypeScript, PHP, Python, Ruby, Rust, and Go. Long trusted as a reporter who prioritizes accuracy, integrity, and the best interests of readers, Paul is sought out by technology companies and industry organizations who want to reach InfoWorld’s audience of software developers and other information technology professionals. Paul has won a “Best Technology News Coverage” award from IDG.

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