Difference between revisions of "Accounting fraud"

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=='''Improper Post-Closing Entries'''==
=='''Improper Post-Closing Entries'''==


*'''<u>SEC v. Weatherford International</u>'''
*'''[https://www.sec.gov/news/pressrelease/2016-194.html SEC v. Weatherford International]'''


On September 27, 2016, Weatherford International agreed to pay a '''$140 million''' penalty to settle charges that it inflated its earnings by using deceptive income-tax accounting. According to the SEC’s order, Weatherford fraudulently lowered its year-end provision for income taxes each year so the company could better align its earnings results with its earlier-announced projections and analysts’ expectations. The company lowered its year-end provision for income taxes by making numerous post-closing adjustments to fill gaps and meet its previously disclosed effective tax rate.
On September 27, 2016, Weatherford International agreed to pay a '''$140 million''' penalty to settle charges that it inflated its earnings by using deceptive income-tax accounting. According to the SEC’s order, Weatherford fraudulently lowered its year-end provision for income taxes each year so the company could better align its earnings results with its earlier-announced projections and analysts’ expectations. The company lowered its year-end provision for income taxes by making numerous post-closing adjustments to fill gaps and meet its previously disclosed effective tax rate.