x
Financial

Broadcom Concludes Accounting Review

IRVINE, Calif. -- Broadcom Corporation (Nasdaq:BRCM - news) today announced that it has completed its previously announced review of the accounting treatment for certain product purchase and development agreements and related performance-based warrants that it assumed upon consummating five acquisitions.

As noted in a press release issued on March 6, 2001, Broadcom and its outside audit firm, Ernst & Young, have been re-evaluating the appropriate accounting treatment for the performance-based warrants. There had been no clear precedent for how transactions of this type should be handled. After consulting with its auditors as well as the staff of the Securities and Exchange Commission, Broadcom has followed the revised advice of its outside auditors in accounting for the purchase and development agreements and the related warrants. As a result, its financial statements for the third quarter of 2000 will be revised. The full year financial statements, when formally reported on Form 10-K, will also follow the new methodology.

"The application of this accounting methodology has had a minor impact on our reported results," said Dr. Henry T. Nicholas III, Broadcom's President and CEO.

http://www.broadcom.com
Be the first to post a comment regarding this story.
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE