外文文献翻译译文
原文
Global Corporate Accounting Frauds and Action for Reforms
1、Introduction
During the recent series of corporate fraudulent financial reporting incidents in the U.S., similar corporate scandals were disclosed in several other countries. Almost all cases of foreign corporate accounting frauds were committed by entities that conduct their businesses in more than one country, and most of these entities are also listed on U.S. stock exchanges. Following the legislative and regulatory reforms of corporate America, resulting from the SarbanesOxley Act of 2002, reforms were also initiated worldwide. The primary purpose of this paper is twofold: (1) to identify the prominent American and foreign companies involved in fraudulent financial reporting and the nature of accounting irregularities they committed; and (2) to highlight the global reaction for corporate reforms which are aimed at restoring investor confidence in financial reporting, the public accounting profession and global capital markets. 2、Cases of Global Corporate Accounting Frauds
The list of corporate financial accounting scandals in the U.S. is extensive, and each one was the result of one or more creative accounting irregularities. Exhibit 1 identifies a sample of U.S. companies that committed such fraud and the nature of their fraudulent financial reporting activities.
EXHIBIT 1. A SAMPLE OF CASES OF CORPORATE ACCOUNTING FRAUDS IN THE U.S.A. Adelphia Communications Founding family collected $3.1 billion in off-balance-sheet loans backed by company. Earnings were overstated by capitalization of expenses and hiding debt. Barter deals and advertisements sold on behalf of others were AOL Time Warner recorded as revenue to keep its growth rate high. Sales were also boosted via \deals with advertisers and suppliers. Inflated 2001 revenues by $1.5 billion by \Bristol-Myers Squibb forcing or giving inappropriate incentives to wholesalers to accept more inventory than they needed, to enable company to meet its 2001 sales targets. CMS Energy Executed \energy trading volume and revenues. Engaged in 23 \trades to boost trading volumes and revenues. Executed \trades to artificially boost energy trading volume, revenues and cash flows. Tops the list of biggest U.S. corporate collapses. Company boosted profits and hid debts totaling over $1 billion over Enron several years by improperly using partnerships. It also manipulated the Texas power and California energy markets and bribed foreign governments to win contracts abroad. Halliburton Improperly booked $100 million in annual construction cost overruns (revenues) before customers agreed to pay for them. Recorded Merck $14 billion over three years in Duke Energy Dynegy consumer-to-pharmacy co-payments that the company never collected.
Inflated revenues using network capacity \and improper accounting for long-term deals. Former CEO L. Qwest Communications Dennis Kozlowski was indicted for tax evasion ($1 million of New York sales tax on art purchases). The SEC is investigating whether the company was aware of his actions, and possible improper use of company funds and related-party transactions, as well as improper merger accounting practices. To cover losses, top executives overstated earnings by capitalizing $9 billion of telecom operating expenses, and thus WorldCom overstating profits and assets over five quarters, beginning 2001. Founder Bernard Ebbers received $400 million in off-the-books loans. Xerox
3、Global Regulatory Action for Corporate and Accounting Reforms
I. U.S. Sarbanes-Oxley Act of 2002 (SOA 2002)
In response to corporate and accounting scandals, the effects of which are still being felt throughout the U.S. economy, and in order to protect public interest and to restore investor confidence in the capital market, U.S. lawmakers, in a compromise by the House and Senate, passed the Sarbanes-Oxley Act of 2002. President Bush signed this Act into law (Public Law 107-204) on July 30, 2002. The Act resulted in major changes to compliance practices of large U.S. and non-U.S. companies whose securities are listed or traded on U.S. stock exchanges, requiring executives, boards of directors and external auditors to undertake measures to implement greater accountability, responsibility and transparency of financial reporting. The statutes of the act, and the new SEC initiatives that followed, are considered the most significant legislation and regulations affecting the corporate community and the accounting profession since 1933. Other U.S. regulatory bodies such as the New York Stock
Overstated earnings for five years, boosting income by $1.5 billion, by misapplication of various accounting rules.
全球公司会计舞弊和改革行为【外文翻译】(1)
