There was a thread in 2004 World Champion fold. Since the 2004 WC officially ends now. I'll revised the thread here. Following quot is from a porter Chris Hall at RSSIF.

Based on the rule you can argue either way if MK's time violation is warrenting the deduction.

This is cut and pasted from Don Korte's web site. Should be a reasonably
up to date version of the USFSA rules (which should be reasonably close to
ISU):

"Section SSR 15.00 contains the rules describing how those time
requirements are interpreted.

Timing of a skater's program always commences when the skater first
begins to move or skate, which is not always at the same time as the
music starts (SSR 15.06). Timing continues until skater comes to a
complete stop at the end of the program."

The relevant stuff for SP's is:

"Short Programs (SSR 15.01 - 15.04)

* The times specified for Short Programs and Adult freeskates are
considered to be Maximum Allowed Times (not-to-exceed).
* There is no deduction or penalty for completing a Short Program in
less time than the specified maximum, as long as all required elements are
completed.
* When the stated time allowance has elapsed, the referee will blow a
whistle, or otherwise inform the judges that the allowed time has elapsed.
ALL JUDGING CEASES IMMEDIATELY. Elements performed after the time limit
do not count. If an element (like a long spin) starts within the allowed
time, but continues beyond time, deductions are taken for overtime."

Judging stops at the max time (in this case 2:40) and deductions start,
with 0.1 every 10 seconds of overtime. If there are newer regs, or
differences with ISU, please post.