Apple and backdating

The company and its independent auditors are reviewing the findings of the independent investigation.

Management continues to believe, and the audit committee agrees, that Apple will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants.

A former chief financial officer of Apple reached a settlement with the Securities and Exchange Commission yesterday over the backdating of stock options and said company founder Steve Jobs had reassured him that the questionable options had been approved by the company board. Anderson, who left Apple last year after a board investigation implicated him in improper backdating, agreed yesterday to pay .5 million to settle civil charges. Heinen, former general counsel for Apple, with violating anti-fraud laws and misleading auditors at KPMG by signing phony minutes for a board meeting that government lawyers say never occurred. He said he warned Jobs in late January 2001 that tinkering with the dates on which six top officials were awarded 4.8 million stock options could have accounting and legal disclosure implications.

Ehrlich said Heinen's actions were authorized by the board, "consistent with the interests of the shareholders and consistent with the rules as she understood them." Anderson issued an unusual statement defending his reputation and tying Jobs to the scandal in the strongest terms to date.

Steve Dowling, a spokesman for Apple, declined to comment on Jobs's conversations with Anderson.

These are now among the pieces of evidence being weighed by the Securities and Exchange Commission as it decides whether to pursue a case against the company or any individuals over the affair, according to these people.

The company and its independent auditors are reviewing recent accounting guidance published by the SEC, and have not yet determined the amount of such charges, the resulting tax and accounting impact, or which periods may require restatement.

The company continues to proactively inform the SEC of its findings.

In his three-hour interview with the Securities and Exchange Commission, Jobs claimed he was ignorant of the backdating and accounting consequences, adding that he was pressured to ask for a generous stock-options package because his board was not supportive of him."Everybody likes to be recognized by his peers," Jobs told an SEC lawyer, according to the Forbes report.

"I felt that the board wasn't really doing the same with me....

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