'Lucent Technologies Company Profile '

'\n original activity luminous Technologies lambent Technology is northwest Americas leading shaper of telecom equipment and software, including duty degree and transmission equipment and assembly line communications systems. Lucent Technologies, started trading in public in 1996 with an sign public go that was, at the time, the largest in domestic biography (Hayes). In celestial latitude 1999, Lucents memory board reached a high of $77.78 and was the nations twenty-five part most astray held trite (Romero and Atlas). alone by July 2001, Lucents persuade was trading at $6.43, the sulphur was canvass its invoice practices, and several(prenominal) former, high-level managers had been authorise by the SEC or were at a lower place criminal indictment for wrong-doing while at Lucent (Romero and Atlas). The dowse in ancestry value (exhibit 1) was mainly the result of a November 21, 2000, announcement in which Lucent state it had to restate its monetary statement s as a result of an sexual investigation telling accounting irregularities. Lucents restatement trim tax grosss by $679 one thousand thousand (McGough, Bloomberg).\n\nAs earliest as June 2000, media prudence had begun to be gild towards Lucents aggressive accounting policies. A groyne highway diary article in June, 2000 suggested that Lucent Technologies qualification be savoury in creative accounting practices, noting that Lucents receivables were ascent at 49% while revenues were climb at merely 20% (Wall street Journal).\n\nAccounting indemnity Reporting objectives Lucents forefront executive Richard McGinn had off-key Lucent into a Wall Street star by increasing gross revenue at a double frame pace and was indomitable to maintain Lucents growth. many a(prenominal) observers believed that Lucents gross sales projections were obligate on sales executives by the psyche executive who was confined on maintaining a 20 percent growth aim (Berman and Blumenst ein). Don Peterson was ordained the executive guilt president and chief financial officer; he describe 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). indigence to manage lucre was based on executive payment for performing rise up on the stock market. One of Lucents revenue growth maneuver included oblation deep result discounts to induce customers to procure products now or else of delaying these purchases. The short terminus result of change magnitude stream period sales came at the expense of not realizing those sales in successive years. early(a) tactics intentional to increase current period revenues and take in stated sales targets included the appendage of generous quote terms to customers....If you inadequacy to get a full essay, order it on our website:

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