Financial Accounting Blog

Sunday, May 02, 2004

A CNet article reported Thursday that telecommunications equipment giant Nortel has fired both their CEO and CFO after the company performed an in-depth review of accounting practices. This article shows once again how financial reporting has come to the forefront of the business world.
"The management shakeup comes as Nortel conducts an internal investigation of its accounting practices. Nortel's internal auditors began looking into the company's finances after it was discovered that roughly $900m in liabilities had been either recorded incorrectly in prior periods or had not been properly released in the appropriate periods."