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IBM: SEC investigating revenue recognition on certain transactions

The U.S. Securities and Exchange Commission is conducting an investigation into IBM's accounting treatment of certain transactions, the company disclosed Tuesday.

Shares of the tech giant were down about 3 percent after the news.

IBM learned of the investigation in August. The SEC is looking into revenue recognition in some transactions that took place in the U.S., U.K. and Ireland.

An IBM spokesperson said the company is cooperating with the agency.

"IBM has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue. We are confident that the results and information we report have been appropriate and consistent with GAAP," the person said.