For those of you that don't know the history they don't teach you at training.
"at the beginning of 1994, Bausch & Lomb was a respected company with an apparently strong position in the US optical products and eye-care sector. It had charmed investors with double-digit earnings growth most years from the mid-1980s up until 1994.
But it was about to be plunged into a strategic crisis and a growing scandal concerning the figures it had reported to investors. By the end of 1994, the US Securities & Exchange Commission (SEC) had begun a formal investigation into the company's accounting practices.
The investigators were to conclude that, during 1993, executives at two of the company's main divisions artificially boosted the company's reported earnings by wrongly recognizing dubious revenue from the sale of contact lenses, and by inventing fictitious sales of Ray-Ban and other branded sunglasses.
The SEC finding, published in 1997 [1], described a series of bad practices at the divisions. It concluded that Bausch & Lomb had made materially false and misleading financial statements in 199394 that led to an overstatement of revenue by $42.3 million and net income by at least $17.6 million or 11 per cent.
Well before those findings were published, the accounting scandal had obliged Bausch & Lomb to issue an earnings retraction, and had led to the departure of executives at the problem divisions. Although SEC investigators found no evidence of complicity in the fraud by senior corporate officers, the debacle severely tested investor faith in Bausch & Lombs corporate culture and internal controls.
It also marred the record of Bausch & Lombs long-term chairman and chief executive officer, Daniel Gill, who retired in late 1995 as shareholders grew increasingly restive about the SEC investigations and the companys poor 199495 results. The value of the companys shares sank by about a third in that period.
Bausch & Lomb survived, but the scandal alerted investors to the major strategic problems that the company faced. Over the past seven years, the company has struggled to identify a successful long-term strategy a struggle that entered another phase in late 2001 and early 2002 with the announcement of a new chief executive officer and more attempts to restructure the company [2].
The lessons of the Bausch & Lomb case seem pertinent again in 2002, as the receding economic tide reveals how easy it is for companies to focus on the form of their financial reporting, rather than the economic substance of their activities."
Economic substance of their activities... It seems pertinent again in 2011. Those who do not know history are doomed to repeat. You think perry and brent or even hassan even remember or know about this. Investors in an IPO won't touch this dog.
"at the beginning of 1994, Bausch & Lomb was a respected company with an apparently strong position in the US optical products and eye-care sector. It had charmed investors with double-digit earnings growth most years from the mid-1980s up until 1994.
But it was about to be plunged into a strategic crisis and a growing scandal concerning the figures it had reported to investors. By the end of 1994, the US Securities & Exchange Commission (SEC) had begun a formal investigation into the company's accounting practices.
The investigators were to conclude that, during 1993, executives at two of the company's main divisions artificially boosted the company's reported earnings by wrongly recognizing dubious revenue from the sale of contact lenses, and by inventing fictitious sales of Ray-Ban and other branded sunglasses.
The SEC finding, published in 1997 [1], described a series of bad practices at the divisions. It concluded that Bausch & Lomb had made materially false and misleading financial statements in 199394 that led to an overstatement of revenue by $42.3 million and net income by at least $17.6 million or 11 per cent.
Well before those findings were published, the accounting scandal had obliged Bausch & Lomb to issue an earnings retraction, and had led to the departure of executives at the problem divisions. Although SEC investigators found no evidence of complicity in the fraud by senior corporate officers, the debacle severely tested investor faith in Bausch & Lombs corporate culture and internal controls.
It also marred the record of Bausch & Lombs long-term chairman and chief executive officer, Daniel Gill, who retired in late 1995 as shareholders grew increasingly restive about the SEC investigations and the companys poor 199495 results. The value of the companys shares sank by about a third in that period.
Bausch & Lomb survived, but the scandal alerted investors to the major strategic problems that the company faced. Over the past seven years, the company has struggled to identify a successful long-term strategy a struggle that entered another phase in late 2001 and early 2002 with the announcement of a new chief executive officer and more attempts to restructure the company [2].
The lessons of the Bausch & Lomb case seem pertinent again in 2002, as the receding economic tide reveals how easy it is for companies to focus on the form of their financial reporting, rather than the economic substance of their activities."
Economic substance of their activities... It seems pertinent again in 2011. Those who do not know history are doomed to repeat. You think perry and brent or even hassan even remember or know about this. Investors in an IPO won't touch this dog.