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IBM disclosed that the U.S. Securities and Exchange Commission is conducting an investigation related to the technology seller’s revenue recognition.

International Business Machines Corp. said Tuesday it learned in August that the SEC is looking into the accounting treatment of certain transactions in the U.S., the U.K. and Ireland, according to a regulatory filing. The Armonk, New York- based company fell 3.1 per cent to US$139.22 at 2:17 p.m. in New York.

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IBM said in the filing that it is cooperating with the SEC. Florence Harmon, a spokeswoman for the agency, declined to comment.

“IBM has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue,” Ian Colley, a company spokesman, said in a statement. “We are confident that the results and information we report have been appropriate and consistent with GAAP.”