Accounting & Tax

Computer Associates to Restate

Changes result from the company's review of its revenue recognition policies since the adoption of its subscription revenue model in fiscal 2001.
Stephen TaubOctober 20, 2005

Computer Associates International Inc. announced that it will restate three years of revenue due to incorrect revenue recognition policies. However, none of the revisions are substantial.

The restatement reflects adjustments to revenue as a result of the company’s review of its revenue recognition policies since the adoption of its subscription revenue model in fiscal 2001, the company added.

The Islandia, New York-based software giant elaborated that it will adjust revenue upward by $15 million in 2003, by $21 million in 2004, and by $30 million in 2005. In addition, the company said that it will reduce revenue by a total of about $80 million for fiscal years 2006 through 2011.

Drive Business Strategy and Growth

Drive Business Strategy and Growth

Learn how NetSuite Financial Management allows you to quickly and easily model what-if scenarios and generate reports.

CA added that these restatements will increase pretax compensation expense by $126 million in 2003, $88 million in 2004, and $39 million in 2005.

The restatements should have no effect on cash flows, the company also stated.

4 Powerful Communication Strategies for Your Next Board Meeting