Home / Live nude cam fin / Backdating a computer

Backdating a computer

“There will always be cases where incentives to manage earnings are particularly acute for a given firm at a given time, and if you have an unethical management, they will push the envelope,” Richardson says.Indeed, he adds, improper timing of revenue recognition is “by far the most common” reason companies are forced to restate earnings.The most extreme incident was the second quarter of 2000, when the company reported 7 million in revenues beyond the

“There will always be cases where incentives to manage earnings are particularly acute for a given firm at a given time, and if you have an unethical management, they will push the envelope,” Richardson says.Indeed, he adds, improper timing of revenue recognition is “by far the most common” reason companies are forced to restate earnings.The most extreme incident was the second quarter of 2000, when the company reported $557 million in revenues beyond the $1.047 billion it could properly claim.The company thus reported 60 cents in earnings per share, beating the consensus Wall Street forecast of 59 cents.Richardson notes that companies are not required to keep mum about revenues received after a reporting period ends.These “order backlogs” can be detailed in quarterly reports so long as they are not in the quarter’s revenue and earnings calculations.

||

“There will always be cases where incentives to manage earnings are particularly acute for a given firm at a given time, and if you have an unethical management, they will push the envelope,” Richardson says.

Indeed, he adds, improper timing of revenue recognition is “by far the most common” reason companies are forced to restate earnings.

The most extreme incident was the second quarter of 2000, when the company reported $557 million in revenues beyond the $1.047 billion it could properly claim.

The company thus reported 60 cents in earnings per share, beating the consensus Wall Street forecast of 59 cents.

Richardson notes that companies are not required to keep mum about revenues received after a reporting period ends.

These “order backlogs” can be detailed in quarterly reports so long as they are not in the quarter’s revenue and earnings calculations.

The contracts that were backdated by a few days were real.

Was this really a crime or should it fall under the heading of no-harm, no-foul?

.047 billion it could properly claim.The company thus reported 60 cents in earnings per share, beating the consensus Wall Street forecast of 59 cents.Richardson notes that companies are not required to keep mum about revenues received after a reporting period ends.These “order backlogs” can be detailed in quarterly reports so long as they are not in the quarter’s revenue and earnings calculations.

Shares currently trade around , down from more than early in 2000.Without the padded revenue, earnings would have been a mere 5 cents per share and the stock price might well have fallen.The victims in the case were the shareholders who were led to believe the company was more profitable than it was, Richardson says.The .3 billion securities fraud case against Computer Associates has been called the last of the big Enron-era cases, involving alleged practices termed “the 35-day month,” “the three-day window” and the “flash period.” Certainly, there are some parallels: Each case involved a multi-billion dollar fraud that required participation by a wide group of top executives and others further down.But the cases of the Houston energy-trading firm and the Islandia, N. Enron executives engaged in an extraordinarily complex hoax, creating a raft of outside businesses that could be used to conceal the firm’s mammoth debt.“People, for whatever reason, are fixating on certain numbers in the financial statement.If it’s not in the quarter, it’s not as good,” Richardson says.Richardson does not believe the Computer Associates case and others like it point to the need for regulatory reform.The accounting flexibility available to public companies is necessary, he notes, even though it makes some breaches hard to detect.In all, the company prematurely reported .3 billion in revenues from 363 software contracts.This violated Generally Accepted Accounting Principles, or GAAP, which state that revenues should not be counted until both parties have properly signed a contract.

609 comments

  1. Free computer Tutorials. home Stay at Home and Learn Control Panel Icons. To see a list of Control Panel icons instead of "Pick a Category" options, you.

  2. The $3.3 billion securities fraud case against Computer Associates has been called the last of the big Enron-era cases, involving alleged practices termed.

Leave a Reply

Your email address will not be published. Required fields are marked *

*