Here is the synopsis of our sample research paper on WorldCom, The Telecommunications Industry and Recent Accounting Techniques
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Essay / Research Paper Abstract
This is a 5 page paper discussing WorldCom Inc and some accounting techniques used in its mergers and acquisitions. Recently, WorldCom one of the world leaders in the telecommunication industry has come under the investigation of the U.S. Securities and Exchange Commission (SEC) as a result of several accounting techniques used during its more than 70 acquisitions of other companies during the last five years. It is estimated that the use of techniques to incur R&D write offs during mergers and acquisitions to inflate future profits included “in process” R&D charges, pooling, restructuring reserve, and revenue recognition. These techniques may proved profitable in the short term have now resulted in the demise of several other telecommunication giants which were also affected by a saturation of competition in the industry and the collapse of the dot com companies. WorldCom now reports a $29 billion debt with the resignation of its former CEO. The World Bank, accounting critics and several other technological companies are recommending steering away from the accounting techniques applied by the telecommunication companies and also advocate changes in accounting techniques which should include a shift in the process of auditors working for the investors and not the companies themselves and a tougher accounting ethics association.
Bibliography lists 8 sources.
Page Count:
5 pages (~225 words per page)
File: D0_TJWorld1.rtf
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Unformatted sample text from the term paper:
Exchange Commission (SEC) as a result of several accounting techniques used during its more than 70 acquisitions of other companies during the last five years. It is estimated that the
use of techniques to incur R&D write offs during mergers and acquisitions to inflate future profits included "in process" R&D charges, pooling, restructuring reserve, and revenue recognition. These techniques may
proved profitable in the short term have now resulted in the demise of several other telecommunication giants which were also affected by a saturation of competition in the industry and
the collapse of the dot com companies. WorldCom now reports a $29 billion debt with the resignation of its former CEO. The World Bank, accounting critics and several other technological
companies are recommending steering away from the accounting techniques applied by the telecommunication companies and also advocate changes in accounting techniques which should include a shift in the process of
auditors working for the investors and not the companies themselves and a tougher accounting ethics association. WorldCom is a telecommunications giant located in
over 65 countries and provides small and global communications services ranging from phone to internet networks. The WorldCom Group, listed as WCOM on NASDAQ, offers high growth data, Internet and
international services as part of WorldCom Inc which operates over countless seamless networks. In regards to revenues and traffic, they consider themselves to be the worlds leading provider in global
data, Internet and network services (WorldCom, 2002). In 2001, WorldComs data, Internet and international services accounted for approximately 70% or $15.8 billion of their total revenues of $22.8 billion.
The same three components of the business also accounted for over 70% of the revenue growth for the year 2000. The company prides itself in attaining many "firsts" over their
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