Parmalat Regulatory Difficulties

PARMALAT REGULATORY DIFFICULTIES For the past several years, the United States has seen a proliferation of memorial scandals culminating in the passage of many laws and regulations with the goal of preventing and punishing much(prenominal) double-dealing activities. The purpose of this paper is to show that such dishonorable estimateing practices argon not limited to the U.S. and the consequences of such duplicityulent accounting practices in organisation global law and policy. In particular, this paper will focusing on the accounting fraud that took place inside an outside(a) company. Parmalat is an Italian-based international dairy and victuals product company. During 2002 and 2003, the company nominate itself involved in double-faced activities. As a response of these fraudulent activities, which are hike up described below, the company, some of its employees, and certain other related parties all(prenominal) suffered serious consequences. On an international le vel, the Parmalat scandal fueled legislative intervention that created an external rouse by imposing sunrise(prenominal) regulations and accounting standards. Fraudulent Activities In an struggle to hide its pecuniary downfall, Parmalat overstated its financial status. Parmalat reported a net debt of 1.8 one thousand one thousand million Euros at the residuum of September 2002, when, in actuality, its debt stood at more(prenominal) than eight times that amount.

The variableness was discovered during an independent financial audit conducted by PriceWaterhouseCoopers (PWC), who was engage shortly after the crisis erupted (Foodnavigator 2004). PWCs report also showed meshing before interest, taxation, depreciation, and amort! ization in the first nine months of 2002 were 121 million Euros lower than the 651 million Euros antecedently stated. Revenues were 4 one million million million Euros, compared with the 5.3 billion Euros   1   previously published by the company. The Parmalat scandal bust after the company admitted that it did not have almost 4 million Euros in an account with Bank of America. Bank of...If you requirement to get a encompassing essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay