NEW YORK (CNN/Money) -
Software provider Computer Associates International Inc. said Monday it was notified the Securities and Exchange Commission staff is considering recommending that the SEC bring a civil enforcement proceeding against its accounting practices.
The firm said the enforcement action would be for premature recognition of revenue from software license contracts in its fiscal year ending March 31, 2000.
The company had previously said that a continuing independent investigation by its audit committee had determined that CA had recognized revenue prematurely in that fiscal year, and that the company had informed government investigators of the committee's preliminary findings. The company adopted a new business model in October 2000 for recognizing revenue from its software license contracts.
Shares of Computer Associates (CA: Research, Estimates) closed down 54 cents to $28.12 in Friday trading.
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