Computer Associates says it will have to restate five years of its accounts, according to reports, following the discovery of a number of "improper" contracts on its books. The software maker also said it will likely defer filing its annual accounts for 15 days.

The news comes less than a year after the conclusion of a very long-running accounting scandal which saw the company fined, have to restate $2.2bn of earnings, and watch its former CEO, Sanjay Kumar, face charges of fraud and obstruction of justice.

The company struck a deferred prosecution deal with the government during the investigation of the accounting scandal, and this requires it to go back over its books, to look for any more anomalies. It found several, including swap agreements with third parties that serve no apparent commercial purpose, and alterations to licence agreements that resulted in early booking of revenue, Reuters reports.

The restatements will cost the company between $80m and $110m in revenue, and around $15m in net income, the wire service reports.

The company also reported a fall in net income for Q4 due to tax on repatriated foreign earnings. CA said it earned $17m in the quarter ended 31 March, down from $89m a year ago. Total revenue was up, however, to $910m. For Q4 2004, this figure was $850m.

The request for a delay in filing its annual report is in line with several other companies, following a tightening of regulatory requirements in the US this year. ®

Related stories

CA's $35m tax charge hits net income
CA reorganisation puts emphasis on security
Novell man reappears at CA
CA re-organises management