The Wall Street Journal
IBM Shares Fall Amid Worries Of SEC Probe

By William M. Bulkeley and John Hechinger

International Business Machines Corp. shares fell 4% as investors fretted that a Securities and Exchange Commission investigation might involve large areas of Big Blue's accounting.

J. Edward Ketz , an associate professor of accounting at Pennsylvania State University, said two accounting issues tend to trip up computer companies. One is "front-ending" income, or recognizing income before delivering systems. And the other is the recognition of income early on for computer services that should be booked as it is being provided.

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Penn State's Smeal College of Business offers highly ranked undergraduate, MBA, executive MBA, Ph.D., and executive education opportunities to more than 5,500 students at all levels. Featuring academic departments of accounting, finance, marketing, insurance and real estate, management, and supply chain and information systems, the college is also home to major research centers such as the Center for Supply Chain Research, the Institute for the Study of Business Markets, the eBusiness Research Center, the Farrell Center for Corporate Innovation and Entrepreneurship, the Center for Global Business Studies, and the Center for the Management of Technological and Organizational Change.

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