Excello Telecommunications October 4, 2014 ETH/376 Katherine Parks Excello Telecommunications has been profitable for many years, but recently has been faced with increased competition for its products by overseas manufacturers. For the first time in the company, it appears that earnings estimates will not be met. Management is concerned about the effect on bonuses, stock options, and the share price of Excello stock. When Terry Reed, the CFO, learns of a transaction on December 20, 2010,
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and reliability of corporate disclosures. New aspects are created by SOX act for corporate accountability as well as new penalties for wrong doings. It was basically introduced after major corporate and accounting scandals including the scandals of Enron, WorldCom etc so that the same kind of scandals do not repeat again. There are 11 titles on the act. Each title consists of several sections. The Securities and Exchange Commission needs to implement rulings on the requirements to comply with the
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Ryan Streetman July, 26, 2011 WORLDCOM’S FALL AND THE CONTROVERSY OF SARBANES OXLEY WorldCom provided telecommunication services of voice and internet. They began as a long distance reseller in 1984. The company was headed by Bernard Ebbers who became the CEO in 1985. The company didn’t go public until the middle of 1989. Through the years, WorldCom became more than just a telecommunications company. They were also information technology out-breakers. They were able to become an internet powerhouse
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1) INTRODUCTION (FASB 2012) & (Cooper, D. J., Et. Al., 2005 I) The Accountancy Profession (a) Accountants benefits the economy and society by contributing to the efficient allocation and management of resources. (b) Contribute to the growth of individual companies. (c) Promote financial market performance, through the reporting of, and providing assurance on, financial information. i) Needs For Regulation (d) Response
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The way leases are accounted for has been the subject of extensive criticism over many years, particularly their role in ‘off balance sheet’ financing. The accounting standard AASB 117 aims to prevent the potential risk assessment problems resulting from the misclassification of leases. In order for appropriate risk evaluations to be made, all the relevant information must be disclosed in the financial statements. The aim of the IAS and AASB 117 accounting standard is to ensure that leased assets
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its financial statement. Introduction There have been found a number of corporate financial scandals (e.g. Tyco International) that provides various type of weakness in the governance and auditing practice in the organization. It represents the failures in controlling the reliability and integrity to the stock markets. The scandals cost billions of dollars for the investors when the affected companies were collapsed. As a result, these scandals make upset the public confidence in the nation’s security
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Internal controls: an overview XACC/280 Internal controls are absolutely essential to the functioning of any public company, and without them companies are doomed to economic turmoil and even collapse. Simply put, internal controls are the various methods that a company uses to “Safeguard its assets from employee theft, robbery, and unauthorized use” and “enhance the accuracy and reliability of its accounting records” (Weygandt, Kimmel, and Kieso, pp. 340). As the text implies, without these
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profits. The end result of these actions can be seen in how the former employees of WorldCom have been victimized the hardest, in terms of their pensions being gutted, as a result of corporate greed. Agency theory will be used to explain how this failure occurred in terms of information asymmetry, specifically moral hazard, and adverse selection in the relationships between the principal (WorldCom Controller and C.F.O) and agents
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occurs when there needs to be a change in accounting principles or there is an error. The number of financial restatements by public companies has increased in the recent years due to increased scrutiny following the well-known accounting scandals at Enron and WorldCom, amount others. The restatement usually involves a completely new audit and in some cases may affect future financial statements in the coming year. The main purpose to restating the financial statement is to review an earlier issued
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A special CBI court on Thursday sentenced B Ramalinga Raju, his two brothers and seven others to seven years in prison in the Satyam fraud case. The court also imposed a fine of Rs 5 crore on Ramalinga Raju, the Satyam Computer Services Ltd's founder and former chairman, and his brother B Rama Raju and Rs 20-25 lakh each on the remaining accused. HT presents a lowdown of the country's biggest-ever corporate accounting scandal . What is the Satyam scam about? It is about corporate governance
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