No one fingered in accounting probes, CA says

Computer Associates International Inc. (CA) has been informed that inquiries by the U.S. Securities and Exchange Commission (SEC) and the U.S. Attorney's Office into the company's accounting practices are only preliminary, no conclusions have been reached, and no one has been identified as a target of the probes, the company said in a statement late Friday.

The company is cooperating fully, CA's statement added.

CA on Feb. 22 confirmed it was under investigation by the SEC and the U.S. Attorney's Office.

CA has come under scrutiny for the way it has accounted for revenue from multiyear software licensing agreements with customers. In late 2000, as it introduced a new business model, the company changed its accounting method from recognizing all the revenue from those agreements up front to recognizing it over the life of the contract.

In its statement Friday, the company said it continues to believe that its accounting has been proper. The introduction of the new business model was driven by a desire to be more customer-oriented in marketing its products rather than by accounting concerns, the statement said.

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