Parmalat Regulatory Difficulties

PARMALAT REGULATORY DIFFICULTIES For the past several years, the United States has seen a proliferation of score scandals culminating in the passage of many laws and regulations with the goal of preventing and punishing much(prenominal) deceitful 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 shaping foreign law and policy. In particular, this paper will focalise on the accounting fraud that took place inside an external company. Parmalat is an Italian-based international dairy and victuals product company. During 2002 and 2003, the company put in itself involved in double-faced activities. As a solution 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 level, the Parmalat s candal fueled legislative intervention that created an external awaken by imposing sunrise(prenominal) regulations and accounting standards. Fraudulent Activities In an lather to hide its pecuniary downfall, Parmalat overstated its financial status. Parmalat reported a net debt of 1.8 one thousand gazillion Euros at the prohibit of September 2002, when, in actuality, its debt stood at more(prenominal) than eight times that amount.

The disparity was discovered during an independent financial audit conducted by PriceWaterhouseCoopers (PWC), who was leased shortly after the crisis erupted (Foodnavigator 2004). PWCs report also showed requital before interest, taxation, depreciation , and amortization in the first nine months ! of 2002 were 121 million Euros lower than the 651 million Euros antecedently stated. Revenues were 4 gazillion 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 exigency to get a encompassing essay, order it on our website: OrderEssay.net

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