Take-Two approached by SEC

According to a report published by Barron's, Take-Two Interactive is under investigation by the SEC for incorrect reporting of impaired assets and one-time charges. Take-Two was approached by the SEC in May and was requested to explain why its books placed high carrying values on impaired assets. Take-Two was again approached by the SEC in June and was requested to explain how its one-time charges complied with accounting rules. In August, the SEC requested paperwork for Take-Two's revenues and expenses.

Take-Two publishes the popular Grand Theft Auto III for the PlayStation 2, among other games. Its shares dropped by nearly a third when it was announced that the release of its financial reports could be delayed.

Source: Barron's