Nortel scandal?
Thursday, December 31st, 2009 at
7:23 pm
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Filed under: Business Phone Systems
Nortel said it will restate financial results for 2003, 2004 and the first nine months of 2005, and will adjust certain figures from earlier periods, "primarily due to revenue incorrectly recognized in prior periods that should have been deferred to future periods."
Thus, the company appears to have cash from future payments that’s not actually deposited in the bank. An audit comparing the company’s financial status will not match what’s in the bank. As well, company officer’s bonuses – based on profits – will be larger than they should be. It’s theft of company funds.