THQ (NASDAQ: THQI) has announced that the independent review of its stock option granting procedures has ended. The review was conducted by a special committee that found no evidence of shady dealing, but identified a few problem areas in the company’s documentation. In particular, the committee found that THQ “misapplied GAAP by using incorrect measurement dates for financial accounting and reporting purposes on a number of occasions.”
Between the dates of January 1, 1996 through March 31, 2006, THQ will record $11 million worth “non-cash stock-based compensation expense and related tax effects.” The adjustments for 2007 will appear in the company’s quarterly report and not effect the current outcome. THQ has been fully co-operating with the SEC (Securities and Exchange Committee) in order to regain full NASDAQ filing compliance.