Parmalat Regulatory Difficulties

PARMALAT REGULATORY DIFFICULTIES For the past several years, the United States has seen a proliferation of chronicle scandals culminating in the passage of many laws and regulations with the goal of preventing and punishing much(prenominal) duplicitous activities. The purpose of this paper is to show that such dishonorable estimateing practices are not limited to the U.S. and the consequences of such duplicityulent accounting practices in shaping international law and policy. In particular, this paper will focus on the accounting fraud that took place inside an international company. Parmalat is an Italian-based international dairy and victuals product company. During 2002 and 2003, the company found itself involved in double-faced activities. As a result 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 scandal fueled legislative intervention that created an external awakening by imposing sunrise(prenominal) regulations and accounting standards. Fraudulent Activities In an effort to hide its pecuniary downfall, Parmalat overstated its financial status. Parmalat reported a net debt of 1.8 one thousand million Euros at the end of September 2002, when, in actuality, its debt stood at more(prenominal) than eight times that amount.



The discrepancy was discovered during an independent financial audit conducted by PriceWaterhouseCoopers (PWC), who was hired shortly after the crisis erupted (Foodnavigator 2004). PWCs report also showed earnings 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 billion Euros, compared with the 5.3 billion Euros


 

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previously published by the company. The Parmalat scandal broke after the company admitted that it did not have almost 4 million Euros in an account with Bank of America. Bank of...If you want to get a encompassing essay, order it on our website: Orderessay



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