In January 2009, an investor was evaluating his outlay in Nortel Networks Corporation. Nortel had currently applied for insolvency protection in the USA and Canada, meaning his entire initial investment was almost surely lost. Nortel had filed a total of four accounting restatements from 2003 to 2007, leading to class-action lawsuits from the investors and investigation by U.S. Securities and Exchange and the Ontario Securities Commision(OSC).
Bearing in mind his losses, the investor speculated whether there were any indications insinuating that Nortel's accounting practices were debatable. He also wanted to realize the accounting issues raised in the SEC and OSC investigations, including improper recording of provisions and improper recognition of revenue. All in all, the investor needed to learn from his loss with Nortel to make future investing picks that were stronger.
PUBLICATION DATE: August 20, 2012 PRODUCT #: W12147-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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