History of Accounting Regulation in Fiji
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- Category: Politics: Economics
- Date Submitted: 06/01/2013 09:47 PM
- Pages: 7
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Case Details: WorldCom…. | |
Case Code | : | FINC022 | . ThemesCorporate scams / Controversies |
Case Length | : | 19 Pages | |
Period | : | 1990 - 2002 | |
Pub. Date | : | 2002 | |
Teaching Note | : | Not Available | |
Organization | : | WorldCom, Arthur Anderson | |
Industry | : | Telecom, Financial Services | |
Countries | : | USA | |
Abstract:The case discusses the accounting frauds committed by the leading US telecommunications giant, WorldCom during the 1990s that led to its eventual bankruptcy. The case provides a detailed description of the growth of WorldCom over the years through its policy of mergers and acquisitions. The case explains the nature of the US telecommunications market, highlighting the circumstances that put immense pressure on companies to project a healthy financial position at all times. The case provides an insight into the ways by which WorldCom manipulated its financial statements. The case also describes the events that led the company to file for reorganization under Chapter 11 of the U.S. Bankruptcy Court in 2002. | |
The role of the company's top management in the scandal has also been discussed. Finally, the case explores the initiatives being taken by the company to change its management structure, improve its performance and restore investor confidence. Issues: » Adverse business conditions often cause companies resort to unethical practices | |
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Corrupt corporate executives are no better than common thieves when they betray their employees and steal from their investors."
- John Ashcroft (US Attorney General), in August 2002.
"WorldCom put extraordinary pressure on itself to meet the expectations of securities analysts."1
- A report filed with the bankruptcy court, November 2002.
Worldcom 2002: Yet Another Corporate Scam
On June 26, 2002, the US-based telecommunications major WorldCom received unprecedented media coverage all over the world. Not for good...
Case Code | : | FINC022 | . ThemesCorporate scams / Controversies |
Case Length | : | 19 Pages | |
Period | : | 1990 - 2002 | |
Pub. Date | : | 2002 | |
Teaching Note | : | Not Available | |
Organization | : | WorldCom, Arthur Anderson | |
Industry | : | Telecom, Financial Services | |
Countries | : | USA | |
Abstract:The case discusses the accounting frauds committed by the leading US telecommunications giant, WorldCom during the 1990s that led to its eventual bankruptcy. The case provides a detailed description of the growth of WorldCom over the years through its policy of mergers and acquisitions. The case explains the nature of the US telecommunications market, highlighting the circumstances that put immense pressure on companies to project a healthy financial position at all times. The case provides an insight into the ways by which WorldCom manipulated its financial statements. The case also describes the events that led the company to file for reorganization under Chapter 11 of the U.S. Bankruptcy Court in 2002. | |
The role of the company's top management in the scandal has also been discussed. Finally, the case explores the initiatives being taken by the company to change its management structure, improve its performance and restore investor confidence. Issues: » Adverse business conditions often cause companies resort to unethical practices | |
| |
| |
| |
| |
Corrupt corporate executives are no better than common thieves when they betray their employees and steal from their investors."
- John Ashcroft (US Attorney General), in August 2002.
"WorldCom put extraordinary pressure on itself to meet the expectations of securities analysts."1
- A report filed with the bankruptcy court, November 2002.
Worldcom 2002: Yet Another Corporate Scam
On June 26, 2002, the US-based telecommunications major WorldCom received unprecedented media coverage all over the world. Not for good...