Nortel Networks: The Canadian Telecommunications Equipment Giant’s Accounting Controversies



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Code : GOV0042

Year :
2005

Industry :Engineering, Electrical and Electronics

Region : Canada

Teaching Note: Not Available

Structured Assignment : Not Available

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Abstract:
The management of Canada-based Nortel Networks Corporation, one of the largest telecommunications equipment companies in the world, was forced to restructure due to the Internet bubble bursting. However when it appeared that the company was able to come out of the downturn in its business by 2003, disaster struck the company again in early 2004, when it announced that it would be re-stating its financial statements for the years 1998 to 2003

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Pedagogical Objectives:

  • To discuss the reasons behind re-statements of financials between the years 1998 and 2003
  • To highlight the impact of accounting controversies on the Nortel's future growth prospects.

    Keywords :Nortel Networks Corporation; Accounting mis-statements; Financial re-statement; Telecommunications equipment maker; John Roth; Frank Dunn; Managing in Troubled Times Case Study; Controversial bonus plan; Return to profitability; William A ‘Bill’ Owens; Chief of ethics; Audit Committee of the Board of Directors; Bell Telephone Canada; Public and private telecom networks; Regulatory investigations; Securities and Exchange Commission (SEC)

    Contents :
    » Nortel's Background
    » Nortel’s Problems
    » The Future


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