Michaels Finds Possible Options Discrepancies

Michaels Stores (MIK Quote) filed its delayed quarterly report late Tuesday and confirmed that there may be accounting discrepancies in its financials related to stock options granted before 2001.

The arts-and-crafts retailer became associated with the so-called options-backdating scandal on Wall Street last week when it delayed filing its 10-Q because its audit committee was reviewing past options-granting practices. In the Tuesday filing, the company said "certain non-routine" options grants may have used a measurement date to determine the exercise price of the options that differed from the measurement date recorded under its accounting policy before 2001.

The company said that non-cash-compensation cost related to that time period could potentially be recorded in an amount up to $60 million. Michaels said any restatements made to its financials as a result wouldn't affect total stockholders' equity. The company noted, though, that the audit committee hasn't reached any conclusions, and its review is ongoing. ...