news


RIM to restate financials

Blackberry maker, Research in Motion on Monday announced that a review of its stock options grants will cause the company to restate its financial statements for fiscal 2004, 2005 and 2006 and Q106.

The Canadian firm said it anticipates taking a $250m (£130.13m) charge after having mispriced the bulk of the stock-option grants awarded in the last decade. It said a special committee had examined the issue and that all options granted before Feb 27, 2002, were accounted for incorrectly due to not applying variable accounting.

The Canadian firm said in a statement: “The Review was commenced under the direction of the Audit Committee of RIM’s Board of Directors, at the initiative of Dennis Kavelman, the Company’s chief financial officer, with the support of Jim Balsillie, the co-chief executive officer… and the executive management team amidst the heightened public awareness and concern regarding stock option granting practices by publicly-traded companies.”

The company confirmed that it is to separate the roles of chairman and chief executive officer. James Balsillie will step down as chairman but remains a co-CEO and director.


Leave a comment

Your email address will not be published. Required fields are marked *

Polls

What is your name?

Loading ... Loading ...