Accounting & Tax

Accounting Issues Delay Ceridian Results

A concern was raised regarding capitalization and expensing of certain costs in the company's human-resources division.
Stephen TaubJuly 21, 2004

Ceridian Corp., a provider of payroll processing and human-resource services, postponed its second-quarter earnings release to review certain accounting issues.

Chairman, president, and chief executive officer Ronald L. Turner said that when a concern was raised internally regarding capitalization and expensing of certain costs in Ceridian’s U.S. Human Resource Solutions business, the company responded “immediately and aggressively to make sure the matter is reviewed appropriately and thoroughly.” The review, which is still in the early stages, is being directed by the company’s audit committee with the assistance of Deloitte & Touche LLP.

Ceridian warned that the review may have an impact on the company’s consolidated financial statements for the second quarter of 2004 and for previously reported periods, as well as guidance.

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The company, which noted that it advised the Securities and Exchange Commission of the review, also noted that it received a formal document request from the SEC in January. “Ceridian provided documents in response to that request, and will continue to be fully cooperative with the SEC,” added the company.