Apple stock irregularities expand in scope
Apple late yesterday said it has discovered more evidence of irregularities related to stock-option grants and warned that it may have to restate earnings back to September 2002, reports MarketWatch. Apple said it will delay filing its report for the latest quarter with the Securities and Exchange Commission. Apple also said it also will likely need to restate results to record non-cash charges for compensation expense relating to past stock-option grants. "The company added it hasn't determined the amount of the charges, and all earnings reported issued relating to periods beginning Sept. 29, 2002 should not be relied upon," notes the story. "Apple officials did not immediately respond to a request for comment."
Just know that while this sounds like some scandalous Enron-esque problem (and it is serious) that Apple is really only covering itself because of new laws and regulations that are retroactive. Also note that Apple has almost always been run like a small business and like a cool local culture business in San Francisco. Think about it this way ... many small businesses don't report all the compensation the owner takes either.