Software giant Microsoft and the US Securities and Exchange Commission are in talks to settle the financial watchdog agency's allegations that the company filed bogus a financial statement, according to The Wall Street Journal.
The misrepresentations would have been to satisfy Wall Street's demands for steady revenue and profit growth, the paper said.
Under a settlement that could still be weeks away, Microsoft is likely to face civil charges that it failed to keep accurate books and records. In such settlements, a company usually pledges to abide by SEC rules. The company is not expected to face a fine.
Microsoft faces charges that it artificially diminished its results, the Journal said.
At issue is whether the company set aside reserves with the effect of reducing revenues and intended to reverse the process to recognize the revenues in a later period. A Microsoft spokesman would not comment on the report.
AFP