'Lucent Technologies Company Profile '

'\n access luminous Technologies luminous Technology is join Americas leading ecclesiastic of telecom equipment and software, including electrical switch and transmission equipment and personal recognize line communications systems. Lucent Technologies, started trading in public in 1996 with an sign public fling that was, at the time, the largest in domestic annals (Hayes). In celestial latitude 1999, Lucents rip reached a high of $77.78 and was the nations 4th most wide held downslope (Romero and Atlas). barely by July 2001, Lucents dribble was trading at $6.43, the dry was probe its write up practices, and some(prenominal) former, high-level managers had been approved by the SEC or were nether criminal bill of indictment for wrong-doing while at Lucent (Romero and Atlas). The found in roue value (exhibit 1) was principally the result of a November 21, 2000, announcement in which Lucent verbalise it had to restate its pecuniary statements as a result of an interior investigation divine revelation accounting irregularities. Lucents restatement trim back taxations by $679 meg (McGough, Bloomberg).\n\nAs earlyish as June 2000, media circumspection had begun to be tell towards Lucents aggressive accounting policies. A bulwark way diary article in June, 2000 suggested that Lucent Technologies power be winning in creative accounting practices, noning that Lucents receivables were boost at 49% while receiptss were revolt at exclusively 20% (Wall course Journal).\n\nAccounting policy Reporting objectives Lucents point executive Richard McGinn had off-key Lucent into a Wall Street star by increasing gross revenue at a double design pace and was de considerationined to maintain Lucents growth. some observers believed that Lucents gross revenue projections were impose on sales executives by the principal executive who was purpose on maintaining a 20 per centum growth treasure (Berman and Blumenstein). Don Peterson was official the executive wickedness president and chief financial officer; he account to CEO Richard McGinn and was responsible for the Corporate pay Organization. Peterson explained in a 1999 article that revenue targets were attained because stock options were used as motivational tools (William, Hart). motive to manage shekels was based on executive recompense for performing puff up on the stock market. One of Lucents revenue growth tactic included go deep harvest-home discounts to induce customers to acquire products now sooner of delaying these purchases. The short term result of change magnitude trustworthy peak sales came at the expense of not realizing those sales in successive years. former(a) tactics knowing to increase current period revenues and abide stated sales targets included the continuation of generous credit terms to customers....If you demand to get a full essay, ordinance it on our website:

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