Insight on WorldCom Scandal Table of Contents ABSTRACT 2 The importance of accounting conceptual framework 3 Historical Background 5 The Scandal – what happened 6 PENALTIES 7 How the scandal relates to accounting theory 8 RELATION TO POSITIVE ACCOUNTING THEORY 9 Conservatism Principle 9 Lack of Reliability 10 Lack of Relevance 11 Financial Misstatement 11 Conclusion 12 Bibliography 14 Insight on WorldCom Scandal ABSTRACT The scope of this paper deals with the
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of AT&T and it enabled small, regional companies gain access to AT&T’s long-distance phone lines at deeply discounted rates. LLDS (Long Distance Discount Services) provided services to those regions where well-established companies, such as MCI and Sprint, had very little presence. At an early stage of the company, Bernard J. Ebbers, was given the charge to run the show. He firmly believed in inorganic growth and focused company’s strategy on acquisitions. Acquiring small long-distance companies
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Management Planning Paper Management Planning Paper WorldCom or “MCI Inc.” (Presently) was a telecommunications company founded in 1983. The company began as Long Distance Discount Services, Inc. (LDDS) and was based out of the state of Mississippi. The company became publicly owned corporation by 1989 as a direct result of the merger between themselves and “Advantage Companies Inc”. It was at this time the company took on a new name (LDDS WorldCom). The primary function of WorldCom at the time
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misclassified were done between 2011 and first quarter 2002. Read more: http://www.ukessays.com/essays/accounting/nature-of-the-fraud-accounting-essay.php#ixzz3qjKkXfsR WORLDCOM'S COLLAPSE: THE OVERVIEW; WORLDCOM FILES FOR BANKRUPTCY; LARGEST U.S. CASE By SIMON ROMERO and RIVA D. ATLAS Published: July 22, 2002 • Facebook • Twitter • Google+ • Email • Share • Print • Reprints • WorldCom, plagued by the rapid erosion of its profits and an accounting scandal that created billions in illusory
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ETHICS IN ACCOUNTING: THE WORLDCOM INC. SCANDAL Conf.univ.dr. Lucian Cernuşca “Aurel Vlaicu” University, Arad, str. Piaţa Sporturilor, nr. 10, bl. 25, apt. 7, 310167 Arad, Phone: 0730468534, luciancernusca@gmail.com What is ethics? What does ethics have to do with accounting? How does a scandal affect the business environment and the society? This article will explain just those questions by analyzing a “famous” fraud scandal: WorldCom Inc. The article discusses the chronology of events
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formally known as LDDS. Ebbers grew the organization with a series of business acquisitions and later changed the name of the company from LDDS to WorldCom in 1995 (Ramero and Atlas, 2002). In 1998 he purchased the telecommunications company to MCI for $37 billion dollars and at that time was the number two long distance provider second to AT&T making WorldCom a telecommunications giant. During this time the company submitted a bid to try and purchase the
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Final Paper: Case Study of WorldCom Financial Statement Fraud Introduction This paper will discuss the financial statement fraud committed by WorldCom by examining what led up to the fraud, who committed it and why, and the impact it caused on various stakeholders and the economy. WorldCom applied aggressive and undisclosed accounting tactics to provide financial statements that reflected a $10 billion profit for the years 2000 and 2001, rather than the actual combined loss of $73.7 billion
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Imagine working for a company that provides everything you need financially from an employer, good benefits, decent salary and stock options that make other companies within the industry jealous. How many other middle managers in the industry can claim a net worth of over one million dollars? During WorldCom’s highest point, some of the middle managers could honestly make such a claim because they had so much stock and the price seemed to just keep going up and up. The stock splits, and because of
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Dr. Susan Gunn’s Samples for Module 1 Case Assignment of ETH501 The following sample from student papers is meant to establish some guidelines on how to approach your essays. The first sample shows an excellent introduction to the first case. The student author provides his/her own approach and allows the reader to know what is going to be discussed. The second example simply uses a long quotation that is not properly formatted. It does not lead the reader into the critical ethical analysis that
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information that can be obtained in Japanese is far less compared with Enron. The fact relevance makes the description of the case a base. WorldCom is a huge telecommunication company that exists in the United States before. The company that Mr. Bernard Ebbers founded in 1983 accomplishes the rapid growth repeating M&A with tremendous force. Long-distance telecom carrier and MCI in the fourth place in the U.S. at that time are purchased in 1996. At that time, this was the maximum M&A play in the history
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