The case against three former executives at Nortel is coming to an end. Their actions have been characterized as a “fraud on the public” by the Canadian prosecutors during their closing statements. These managers at Nortel Networks Corporation allegedly used accounting tricks to buoy quarterly profits and activate various bonuses for themselves. Linda Nguen quotes [...]
As you may recall, we previously discussed problems in government pension accounting (see “California Budget Woes and Chimerical Pension Beliefs: GASB Could Help if it Had the Will”). In this essay we turn our attention to corporate pension accounting, pension expense specifically, using Weyerhaeuser disclosures as an example.
Monday September 10 Groupon named a new Chief Accounting Officer, Brian Stevens, formerly a partner with KPMG. The question, of course, is whether this move is enough to save face with the investment community, after the many fiascos we have discussed, such as our “Still Accounting Challenged” and “First 10-K.”
Zynga is back in the news with disappointing results. The Company’s second quarter results were announced on July 25 with a loss and slowing revenue growth. Several law firms responded in our great American tradition by announcing class-action suits.
Groupon has suffered through several financial restatements, revisions of its revenues, SEC criticism of its non-GAAP performance metrics, internal control weaknesses over financial reporting, and public critiques of its reported operating cash flows. One would have thought that Groupon might have learned its lesson about the importance of accounting quality and financial reporting transparency. But [...]