Accounting Scandals

May 29th, 2015
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WorldCom was one of the big success stories of the 1990s. It was a symbol aggressive capitalism. Founded by Bernie Ebbers, one of the most aggressive acquirer during the US mergers and acquisitions boom of the 1990s. WorldCom's asset value had soared to $180bn before the US capital market started witnessing a downtrend.

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Accounting Scandals Rajkumar S Adukiarajkumarfca@gmail.comSeveral big firms have come under scrutiny recently for questionable accounting practices. Some of the worlds biggest accounting scandals WorldComWorldCom was one of the big success stories of the 1990s. It was a symbol aggressive capitalism. Founded by Bernie Ebbers, one of the most aggressive acquirer during the US mergers and acquisitions boom of the 1990s. WorldCom's asset value had soared to $180bn before the US capital market started witnessing a downtrend.WorldCom admitted in March 2002 that it will have to restate its financial results to account for billions of dollars in improper bookkeeping after an internal audit showed transfers of about $3.06 billion for 2001 and $797 million for the first quarter of 2002 were not made in accordance with generally accepted accounting principles. In August 2002, An internal audit has revealed an additional $3.3bn (2.2bn) of improperly reported earnings - taking the total to more than $7bn, double the level previously reported. $3.3bn was money from the company's reserves, which was misrepresented as operating income. As a result of the discovery, WorldCom said that its financial statements for the year 2000 will have to be reissued. The company also said it may now write off $50.6bn in intangible assets. Former chief financial officer Scott Sullivan and ex-controller David Myers were arrested a week ago, and face seven counts of securities fraud and f

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