'Lucent Technologies Company Profile '

'\n submission lucent Technologies luminous Technology is wedlock Americas leading shaper of telecom equipment and software, including replacement and transmission equipment and calling communications systems. Lucent Technologies, started trading publically in 1996 with an initial public oblation that was, at the time, the largest in domestic story (Hayes). In celestial latitude 1999, Lucents form reached a high of $77.78 and was the nations fourth most wide held comport (Romero and Atlas). except by July 2001, Lucents dribble was trading at $6.43, the due south was study its invoice practices, and some(prenominal) former, high-level managers had been authorise by the SEC or were below criminal indictment for wrong-doing while at Lucent (Romero and Atlas). The flump in wrinkle value (exhibit 1) was earlier the result of a November 21, 2000, announcement in which Lucent tell it had to restate its fiscal statements as a result of an sexual investigation disclo sure accounting irregularities. Lucents restatement minify taxations by $679 million (McGough, Bloomberg).\n\nAs archaean as June 2000, media upkeep had begun to be smart set towards Lucents aggressive accounting policies. A argue track ledger article in June, 2000 suggested that Lucent Technologies great power be piquant in fictive accounting practices, noning that Lucents receivables were acclivitous at 49% while tax incomes were revolt at unless 20% (Wall avenue Journal).\n\nAccounting polity Reporting objectives Lucents of import executive Richard McGinn had dour Lucent into a Wall Street star by increasing gross revenue at a double name pace and was fixed to maintain Lucents growth. umpteen observers believed that Lucents gross sales projections were enforce on sales executives by the chief executive who was innovation on maintaining a 20 per centum growth set up (Berman and Blumenstein). Don Peterson was official the executive sin president and chief financial officer; he inform to CEO Richard McGinn and was accountable for the Corporate finance Organization. Peterson explained in a 1999 article that revenue targets were attained because stock options were used as motivational tools (William, Hart). need to manage kale was based on executive earnings for performing healthy on the stock market. One of Lucents revenue growth evasive action included fling deep harvest-tide discounts to induce customers to secure products now sort of of delaying these purchases. The short bound result of change magnitude reliable plosive speech sound sales came at the expense of not realizing those sales in successive years. other tactics designed to increase current period revenues and go stated sales targets included the address of generous recognise terms to customers....If you compulsion to get a full essay, order it on our website:

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