In January 2009, an investor’s investment in the assessment of Nortel Networks Corporation. Nortel had recently filed for bankruptcy protection in the U.S. and Canada, which means almost certainly lost his entire original investment. Nortel had four accounting adjustments filed 2003-2007, leading to collective action by investors and investigations by the U.S. Securities and Exchange Commission (SEC) and the Ontario Securities Commission (OSC). Considering its lo … Read more »

In January 2009, an investor’s investment in the assessment of Nortel Networks Corporation. Nortel had recently filed for bankruptcy protection in the U.S. and Canada, which means almost certainly lost his entire original investment. Nortel had four accounting adjustments filed 2003-2007, leading to collective action by investors and investigations by the U.S. Securities and Exchange Commission (SEC) and the Ontario Securities Commission (OSC). In view of its losses, asked the investor whether it. Was any indication that Nortel accounting were problematic He also wanted the accounting issues raised in the SEC and OSC investigations to understand how improper revenue recognition and improper inclusion of provisions. Overall, the investor wanted to learn from his loss with Nortel to meet strengthened to invest in future decisions.
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from
Darren Henderson,
Chris Sturby,
Christine Liu
Source: Ivey Publishing
12 pages.
Release Date: 20, August 2012. Prod #: W12147-PDF-ENG
Alleged accounting fraud at Nortel Networks Corporation HBR case solution

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