SEC Probes Revenue Recognition At Dell

Law360, New York (August 18, 2006, 12:00 AM EDT) -- Computer maker Dell Inc. has not had a good week. In addition to recalling 4.1 million laptop batteries, the company disclosed that the U.S. Securities and Exchange Commission is investigating its revenue-recording practices.

The company said that the Commission had launched the informal probe last year, focusing on possible accounting issues stemming from improper revenue recognition.

In complying with the investigation, Dell said it discovered several potential issues that could have an effect on financial statements made in the fiscal year that ended in February of...
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