tag:blogger.com,1999:blog-75800969036458234092023-11-15T15:50:47.854+01:00Financial AnalysesFinancial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.comBlogger52125tag:blogger.com,1999:blog-7580096903645823409.post-30327245455601277832012-03-13T16:48:00.000+01:002012-03-13T16:48:24.712+01:007 Travel Insurance Tips for Your Next Vacation<div style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">The news of the cruise ship disaster off the coast of Italy was particularly noteworthy for my family. On April 1, we set sail on a seven-day Caribbean cruise. My daughter is already freaking out, and my son is not helping matters. He's plastered pictures of the Costa Concordia all over the house.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">One issue the tragedy has brought into focus for us is<span class="apple-converted-space"> </span><span class="yshortcuts"><span id="lw_1326990489_0">travel insurance</span></span>. My<span class="apple-converted-space"> </span><span class="yshortcuts"><span id="lw_1326990489_2">travel agent</span></span><span class="apple-converted-space"> </span>and I discussed travel insurance when I booked our cruise. Frankly, after spending thousands of dollars on airfare and a cruise, spending even more money on insurance is not my idea of a good time. But because of the cost of our trip, it's an issue we can't afford to avoid.<o:p></o:p></span></div><div style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">While I'm not an expert in travel insurance, my research has been quite revealing.<o:p></o:p></span></div><div style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><br />
</span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><strong><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">1. Only insure what you can't afford to lose.</span></strong><span class="apple-converted-space"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Not every trip needs travel insurance. If your potential loss is a few hundred dollars in airfare, travel insurance is probably not worth the cost or aggravation. On the other hand, a once-in-a-lifetime $20,000 vacation is worth protecting. In this way, travel insurance is no different than most other types of insurance.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><br />
</span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><strong><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">2. There are many options.</span></strong><span class="apple-converted-space"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Before my research, I assumed there was just one type of travel insurance. In turns out that there are many types, including travel insurance for trip cancellation, trip interruption, medical, lost baggage, evacuation, and flight insurance. My primary concern is<span id="lw_1326990489_1"> <span class="yshortcuts">trip cancellation insurance</span></span>, but there are many options to consider. Many travel insurance companies offer bundled insurance packages that combine two or more types of travel insurance.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><br />
</span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><strong><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">3. Age matters.</span></strong><span class="apple-converted-space"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Whether it's medical insurance or trip cancellation insurance, your physical health is an important factor in determining a premium. While you won't have to get a physical like you would with life insurance, your age will affect the cost of the insurance.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><br />
</span></div><div style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt; text-align: justify;"><strong><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">4.</span></strong><span class="apple-converted-space"><b><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></b></span><span class="yshortcuts"><b><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><span id="lw_1326990489_3">Health insurance</span></span></b></span><span class="apple-converted-space"><b><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></b></span><strong><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">may not cover you.</span></strong><span class="apple-converted-space"><b><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></b></span><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">I was also surprised to learn that not all health insurance policies, including Medicare, cover you overseas or on a cruise flying under a foreign flag. The key is to contact your health insurance provider to find out what coverage you do have when you're traveling. Only then can you make an informed decision about this type of travel insurance.<o:p></o:p></span></div><div style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt; text-align: justify;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><br />
</span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><strong><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">5. Timing issues.</span></strong><span class="apple-converted-space"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">I was surprised to learn from my travel agent that we didn't have to decide on travel insurance when we booked our cruise. In fact, you can buy travel insurance just days before your departure. This are risks, however, in waiting. Some types of travel insurance may require you to purchase the insurance within a set time period after you've booked your travel. And for trip cancellation insurance, you won't be covered if you buy the insurance after you've become ill or the hurricane has wiped out your vacation destination.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><br />
</span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><strong><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">6. Costs vary.</span></strong><span class="apple-converted-space"><b><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></b></span><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">It's wise to compare costs before making a decision. While your travel agent will have options for you, they may not be the best or the least expensive. Some of the more well-known travel insurance companies include Access America, Travel Guard, and Travel Insured. And you can use sites like insuremytrip.com to compare travel insurance options.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 9.1pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><strong><span lang="SQ" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">7. Travel rewards cards won't help.</span></strong><span class="apple-converted-space"><b><span lang="SQ" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"> </span></b></span><span lang="SQ" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><span style="text-align: -webkit-auto;">At first I assumed that a<span class="apple-converted-space"> </span></span></span><span lang="SQ" style="background: white; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">top-notch travel rewards credit card<span class="apple-converted-space"> </span>would have some travel insurance. But apart from limited baggage insurance, accident insurance, and rental<span class="apple-converted-space"> </span><span class="yshortcuts"><span id="lw_1326990489_4" style="text-align: -webkit-auto;">car insurance</span></span><span class="apple-converted-space"><span style="text-align: -webkit-auto;"> </span>with some cards, however, travel insurance is not part of the benefits. If you want trip cancellation or interruption insurance, you'll have to buy it.</span></span><span lang="SQ" style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com1tag:blogger.com,1999:blog-7580096903645823409.post-69388715410808885852012-03-02T14:27:00.001+01:002012-03-02T14:32:10.324+01:00How to Write a Personal Financial Plan<div class="MsoNormal" style="text-align: justify;"><br />
<div class="MsoNormal" style="line-height: 150%;"><span lang="SQ" style="background: #F9F7F1; color: #414141; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">Financial plans are written, organized strategies for maintaining financial health and accomplishing financial goals. Whether or not you employ a professional financial planner, it is your responsibility to contemplate and develop your own financial plan, centered on your unique circumstances, desires and objectives. Follow these steps for how to write a personal financial plan.</span><o:p></o:p></div><div class="MsoNormal" style="line-height: 150%;"><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">1</span><span lang="SQ" style="background: #F9F7F1; color: #414141; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoListParagraph" style="line-height: 150%; margin-left: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">1)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="background: #F9F7F1; color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Set goals</span></b><span style="background: #F9F7F1; color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Personal financial planning revolves around goals. Consider what you want your lifestyle to be like in the present, near future and distant future, then create an outline of your goals that is comprehensive enough to cover every facet of your life:<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Intellectual goals. Furthering your education, participating in leadership retreats, sending your children to college and attending seminars are types of intellectual goals.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Occupational goals. Personal financial planning requires that you produce a stream of income, and you need to consider the ways in which you plan to produce income, whether it be earning raises at work or switching careers altogether.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Lifestyle goals. This category encompasses the things you do for fun and entertainment, and the things you feel are necessary to the quality of life you aim for.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Residence goals. Your financial plans should account for any desire you might have to move to a new location.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Retirement goals. Consider the lifestyle you want when you retire, and set personal financial planning goals that will provide for a retirement that is comfortable to your standards.<o:p></o:p></span></div><div style="background: #F9F7F1; border-bottom: dashed #BFBFBF 1.0pt; border: none; margin-left: -37.5pt; margin-right: 0in; mso-border-bottom-alt: dashed #BFBFBF .75pt; mso-element: para-border-div; padding: 0in 0in 15.0pt 0in;"> <div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">2.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">2<o:p></o:p></span></div></div><div style="background: #F9F7F1; border-bottom: dashed #BFBFBF 1.0pt; border: none; mso-border-bottom-alt: dashed #BFBFBF .75pt; mso-element: para-border-div; padding: 0in 0in 15.0pt 0in;"> <div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">2)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Organize your financial records</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Create a filing system of your tax returns, bank account statements, insurance policy information, contracts, receipts, wills, deeds, titles, bills, investment plan statements, retirement account statements, pay stubs, employee benefits statements, mortgages and any other type of document that is related to your financial life.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">3.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">3<o:p></o:p></span></div><div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">3)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Create a preliminary budget</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Your budget is a starting point for determining how you will reach your financial goals, as it allows you to identify and assess your spending habits. Write out all of your current monthly expenses, as well as your current monthly income.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">4.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">4<o:p></o:p></span></div><div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">4)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Determine which spending habits you need to change</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Using your budget as a reference, identify unnecessary monthly expenses so that you can redirect any wasted money into accomplishing the goals outlined in your personal financial plan.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">5.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">5<o:p></o:p></span></div><div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">5)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Estimate your projected income</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Take into account your future plans for increasing your income, as well as your timeline for those projected changes. Consider the following 3 income-producing methods when forecasting your income, and decide which you intend to employ:<o:p></o:p></span></div></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Career. Traditional employment under an employer, either salaried or hourly, constitutes career income.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Business. If your financial plans include starting a home business or profiting from a hobby or interest, then that income would be classified under business.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Investments. Investing is an activity that leverages money to produce a return, and includes things like stocks, bonds, real estate, money market accounts and certificates of deposit.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Inheritance. In addition to active forms of income production, be sure to include any anticipated inheritance money to your projected income.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: #f9f7f1; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Unexpected income. There may be circumstances in your future where you find yourself with an unexpected lump sum of money (i.e. lottery winnings, gifts, bonuses and/or property value increases). Plan for this possibility by deciding how you will use that money. For example, you may allot 50 percent to your retirement account and the other 50 percent to growing a business, or you may choose to put the entire amount into an interest-bearing savings account.<o:p></o:p></span></div><div style="background: #F9F7F1; border-bottom: dashed #BFBFBF 1.0pt; border: none; mso-border-bottom-alt: dashed #BFBFBF .75pt; mso-element: para-border-div; padding: 0in 0in 15.0pt 0in;"> <div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">6.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">6<o:p></o:p></span></div><div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">6)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Set a time frame for accomplishing your goals</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Separate goals into categories, starting with present goals and dividing the rest into immediate future (within 1 year), near future (within 5 years), extended future (within 10 years) and distant future (onward to retirement) goals.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">7.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">7<o:p></o:p></span></div><div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">7)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Create an extended budget</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. This budget is different from your preliminary budget in that it uses your projected income and takes into account what your future goals will cost you. Be sure to include necessary expenses as well as luxury expenses.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">8.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">8<o:p></o:p></span></div><div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">8)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Devise an income strategy that will sustain your goals</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Taking your projected income, time frame and goal expenses into account, calculate how much of your income you need to dedicate toward each goal category on a monthly and yearly basis. This amount may fluctuate in correlation with your future income projections.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">9.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">9<o:p></o:p></span></div><div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">9)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Commit to your financial plan</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. It is not enough just to write your plans on paper. You must commit to adhering to the steps you outline for yourself if you want your personal financial plan to be effective.<o:p></o:p></span></div></div><div style="background: #F9F7F1; border-bottom: dashed #BFBFBF 1.0pt; border: none; mso-border-bottom-alt: dashed #BFBFBF .25pt; mso-element: para-border-div; padding: 0in 0in 15.0pt 0in;"> <div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">10.<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: white; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">10<o:p></o:p></span></div><div class="MsoListParagraph" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-color: initial; border-image: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-indent: 0in;"><!--[if !supportLists]--><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">10)<span style="font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Reframe your financial plan as necessary</span></b><span style="color: #414141; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Remember that personal financial planning is a goal - not a process - and that you may need to update it as your life's circumstances change. If you find that your income is not enough to accommodate your goals, then formulate a plan to create more income through career, business and/or investments, or reset your goals within a more realistic framework.<o:p></o:p></span></div></div><div class="MsoNormal" style="line-height: 150%;"><br />
</div></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-12754675941478453082012-02-26T16:07:00.000+01:002012-02-26T16:07:04.684+01:00Cost/Benefit Analysis<div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">You may have been intensely creative in generating solutions to a problem, and rigorous in your selection of the best one available. This solution may still not be worth implementing, as you may invest a lot of time and money in solving a problem that is not worthy of this effort.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Cost Benefit Analysis or CBA is a relatively* simple and widely used technique for deciding whether to make a change. As its name suggests, to use the technique simply add up the value of the benefits of a course of action, and subtract the costs associated with it.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Costs are either one-off, or may be ongoing. Benefits are most often received over time. We build this effect of time into our analysis by calculating a payback period. This is the time it takes for the benefits of a change to repay its costs. Many companies look for payback over a specified period of time – e.g. three years.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">In its simple form, cost-benefit analysis is carried out using only financial costs and financial benefits. For example, a simple cost/benefit analysis of a road scheme would measure the cost of building the road, and subtract this from the economic benefit of improving transport links. It would not measure either the cost of environmental damage or the benefit of quicker and easier travel to work.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">A more sophisticated approach to cost/benefit measurement models is to try to put a financial value on intangible costs and benefits. This can be highly subjective – is, for example, a historic water meadow worth $25,000, or is it worth $500,000 because if its environmental importance? What is the value of stress-free travel to work in the morning?<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">These are all questions that people have to answer, and answers that people have to defend.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">The version of cost/benefit analysis we explain here is necessarily simple. Where large sums of money are involved (for example, in financial market transactions), project evaluation can become an extremely complex and sophisticated art. The fundamentals of this are explained in </span><b><u><span lang="SQ" style="color: #e36313; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Principles of Corporate Finance</span></u></b><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"> by Richard Brealey and Stewart Myers – this is something of an authority on the subject.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><br />
</span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-outline-level: 2; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Example:<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">A sales director is deciding whether to implement a new computer-based contact management and sales processing system. His department has only a few computers, and his salespeople are not computer literate. He is aware that computerized sales forces are able to contact more customers and give a higher quality of reliability and service to those customers. They are more able to meet commitments, and can work more efficiently with fulfillment and delivery staff.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">His financial cost/benefit analysis is shown below:<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><br />
</span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><b><i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Costs:</span></i></b><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><br />
New computer equipment:<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">10 network-ready PCs with supporting software @ $2,450 each<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">1 server @ $3,500<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">3 printers @ $1,200 each<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Cabling & Installation @ $4,600<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Sales Support Software @ $15,000<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Training costs:<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l3 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Computer introduction – 8 people @ $400 each<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l3 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Keyboard skills – 8 people @ $400 each<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l3 level1 lfo2; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Sales Support System – 12 people @ $700 each<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Other costs:<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Lost time: 40 man days @ $200 / day<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Lost sales through disruption: estimate: $20,000<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l2 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Lost sales through inefficiency during first months: estimate: $20,000<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Total cost: $114,000</span></i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><br />
</span></i></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><b><i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Benefits:</span></i></b><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Tripling of mail shot capacity: estimate: $40,000 / year<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Ability to sustain telesales campaigns: estimate: $20,000 / year<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Improved efficiency and reliability of follow-up: estimate: $50,000 / year<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Improved customer service and retention: estimate: $30,000 / year<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Improved accuracy of customer information: estimate: $10,000 / year<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 4.25pt; margin-left: 25.4pt; margin-right: 16.95pt; margin-top: 0in; mso-list: l0 level1 lfo4; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span lang="SQ" style="color: #505050; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">More ability to manage sales effort: $30,000 / year<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Total Benefit: $180,000/year</span></i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Payback time: $114,000 / $180,000 = 0.63 of a year = approx. 8 months</span></i><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><br />
</div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><b><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Tip:</span></b><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><br />
The payback time is often known as the </span><b><u><span lang="SQ" style="color: #e36313; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">break even point</span></u></b><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">. Sometimes this is is more important than the overall benefit a project can deliver, for example because the organization has had to borrow to fund a new piece of machinery. The break even point can be found graphically by plotting costs and income on a graph of output quantity against $. Break even occurs at the point the two lines cross.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><br />
</span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-no-proof: yes;"><!--[if gte vml 1]><v:shapetype
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height:11.25pt;visibility:visible;mso-wrap-style:square'> <v:imagedata src="file:///C:\Users\ADMINI~1.PC-\AppData\Local\Temp\msohtmlclip1\01\clip_image001.png"
o:title="bottom460grey"/> </v:shape><![endif]--><!--[if !vml]--><!--[endif]--></span><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Inevitably the estimates of the benefit given by the new system are quite subjective. Despite this, the Sales Director is very likely to introduce it, given the short payback time.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><br />
</div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 2.55pt; mso-outline-level: 2; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; letter-spacing: -.45pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";"><b>Key Points:</b><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Cost/Benefit Analysis is a powerful, widely used and relatively easy tool for deciding whether to make a change.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">To use the tool, firstly work out how much the change will cost to make. Then calculate the benefit you will from it.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Where costs or benefits are paid or received over time, work out the time it will take for the benefits to repay the costs.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="SQ" style="color: #505050; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">Cost/Benefit Analysis can be carried out using only financial costs and financial benefits. You may, however, decide to include intangible items within the analysis. As you must estimate a value for these, this inevitably brings an element of subjectivity into the process.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-101853778680619802012-02-22T16:30:00.000+01:002012-02-22T16:30:24.865+01:00How to Create a Sales Forecast<div style="line-height: 150%; margin-bottom: 18.85pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">Developing your sales forecast isn’t as hard as most people think. Think of your sales forecast as an educated guess. Forecasting takes good working knowledge of your business, which is much more important than advanced degrees or complex mathematics. It is much more art than science.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 18.85pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">Whether you have business training or not, don’t think you aren’t qualified to forecast. If you can run a business, then you can forecast its sales. Most people can guess their own business’ sales better than any expert device, statistical analysis, or mathematical routine. Experience counts more than any other factor.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 18.85pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">Break your sales down into manageable parts, and then forecast the parts. Guess your sales by line of sales, month by month, then add up the sales lines and add up the months.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 18.85pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">The illustration below gives you an example of a simple sales forecast that includes simple price and cost forecasts which are used to calculate projected sales and direct cost of sales and estimate total dollar value for each category of sales.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify; vertical-align: baseline;"><strong><span style="border: none windowtext 1.0pt; color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">Use text to explain the forecast and related plans and background</span></strong><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"><br style="border-color: initial; border-image: initial; border-style: initial;" /> Although the charts and tables are great, you still need to explain them. A complete<span class="apple-converted-space"> </span><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">business plan </span>should normally include some detailed text discussion of your sales forecast, sales strategy, sales programs, and related information. Ideally, you use the text, tables, and charts in your plan to provide some visual variety and ease of use. Put the tables and charts near the text covering the related topics.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 18.85pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">In my standard business plan text outline, the discussion of sales goes into the chapter on Strategy and Implementation. You can change that to fit whichever logic and structure you use. In practical terms, you’ll probably prepare these text topics as separate items, to be gathered into the plan as it is finished.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"><span style="border: none windowtext 1.0pt; color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">Sales strategy</span></strong><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"><br style="border-color: initial; border-image: initial; border-style: initial;" /> Somewhere near the sales forecast you should describe your sales strategy. Sales strategies deal with how and when to close sales prospects, how to compensate sales people, how to optimize order processing and database management, and how to maneuver price, delivery, and conditions.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 18.85pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">How do you sell? Do you sell through retail, wholesale, discount, mail order, phone order? Do you maintain a sales force? How are sales people trained, and how are they compensated? Don’t confuse sales strategy with your marketing strategy, which goes elsewhere. Sales should close the deals that marketing opens.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 18.85pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">To help differentiate between marketing strategy and sales strategy, think of marketing as the broader effort of generating sales leads on a large scale, and sales as the efforts to bring those sales leads into the system as individual sales transactions. Marketing might affect image and awareness and propensity to buy, while sales involves getting the order.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"><span style="border: none windowtext 1.0pt; color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">Forecast details</span></strong><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"><br style="border-color: initial; border-image: initial; border-style: initial;" /> Your business plan text should summarize and highlight the numbers you have entered in the Sales Forecast table. Make sure you discuss important assumptions in enough detail, and that you explain the background sufficiently. Try to anticipate the questions your readers will ask. Include whatever information you think will be relevant, that your readers will need.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"><br />
</span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"><span style="border: none windowtext 1.0pt; color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">Sales programs</span></strong><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"><br style="border-color: initial; border-image: initial; border-style: initial;" /> Details are critical to implementation. Use this topic to list the specific information related to sales programs in your milestones table, with the specific persons responsible, deadlines, and budgets. How is this strategy to be implemented? Do you have concrete and specific plans? How will implementation be measured?<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="border: none windowtext 1.0pt; color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">Business plans</span><span class="apple-converted-space"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"> </span></span><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;">are about results, and generating results depends in part on how specific you are in the plan. For anything related to sales that is supposed to happen, include it here and list the person responsible, dates required, and budgets. All of that will make your business plan more real.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"><br />
</span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; vertical-align: baseline;"><strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-color: initial; border-color: initial; border-image: initial; border-style: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"><span style="border: none windowtext 1.0pt; color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: minor-latin; padding: 0in;">How many years?</span></strong><span style="color: #2b2b2b; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Helvetica; mso-hansi-theme-font: minor-latin;"><br style="border-color: initial; border-image: initial; border-style: initial;" /> I believe a business plan should normally project sales by month for the next 12 months, and annual sales for the following two years. This doesn’t mean businesses shouldn’t plan for a longer term than just three years, not by any means. It does mean, however, that the detail of monthly forecasts doesn’t pay off beyond a year, except in special cases. It also means that any detail in the yearly forecasts probably doesn’t make sense beyond three years. It does mean, of course, that you still plan your business for five, 10, and even 15-year time frames; just don’t do it within the detailed context of business plan financials.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-19994442485409585532012-02-17T17:07:00.001+01:002012-02-17T17:15:24.941+01:00How to Write a Financial Statement Analysis<h2 style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 0in; vertical-align: baseline;"></h2><h2 style="background: white; line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify; vertical-align: baseline;"><span style="font-weight: normal;"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; font-size: 16pt; line-height: 150%;">A financial statement analysis is a comprehensive examination of the financial statements of a business. Financial statement analyses are often used for investment research in the context of scrutinizing the health of a target company. There are five discrete steps required to write the most common form of financial statement analysis. Accurate numeric calculation is the key to a successful analysis.</span><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;"><br />
<span style="border-color: initial; border-image: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"><br />
</span></span><span style="font-size: 16pt; letter-spacing: -0.8pt; line-height: 150%;">Instructions<o:p></o:p></span></span></h2><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-weight: normal;"><span style="font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-weight: normal;"><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 16.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">1</span><span style="font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.1pt; text-align: justify; vertical-align: baseline;"><span style="font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: normal; line-height: 150%;">Get the financial statements for your target business. The financial statements of publicly traded companies are available for free through the Securities and Exchange Commission's EDGAR database (see Resources). For privately held companies, financial statements are very difficult to obtain. These companies are under no obligation to report or even prepare financial statements. Publicly traded companies must file financial statements at set intervals. For this reason, financial statement analyses are usually conducted on publicly traded companies.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-weight: normal;"><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 16.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">2</span><span style="font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.1pt; text-align: justify; vertical-align: baseline;"><span style="font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: normal; line-height: 150%;">Obtain the financial statements for businesses that operate in the same industry as your target business. For publicly traded companies, use the SIC codes from the SEC's EDGAR database to identify companies in the same industry. The most common form of financial statement analysis involves comparing a target company against a benchmark developed from the financial statements of competitors. The more company financial statements you have available, the better your benchmark.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-weight: normal;"><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 16.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">3</span><span style="font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.1pt; text-align: justify; vertical-align: baseline;"><span style="font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: normal; line-height: 150%;">Compare each line item on the financial statement of your chosen company against the identical item on a competitor's financial statement. For example, look at the current assets section of the balance sheets to compare the accounts receivable of the two companies. If your target company has a much larger accounts receivable balance than its competitor in the same industry, this suggests you should investigate this particular financial statement item further.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.1pt; text-align: justify; vertical-align: baseline;"><span style="font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: normal; line-height: 150%;">You should be able to identify items of significant difference or items of surprising similarity for use in additional analysis. It is crucial to compare similar companies on a line-by-line basis in writing a financial statement analysis, to identify small differences in terminology or item placement.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-weight: normal;"><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 16.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">4</span><span style="font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.1pt; text-align: justify; vertical-align: baseline;"><span style="font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: normal; line-height: 150%;">Conduct detailed ratio analysis for accounts of interest. Continuing the previous example, if your target company has an extraordinarily high accounts receivable balance, you should construct an accounts receivable turnover ratio by dividing the accounts receivable balance into sales. Compare the accounts receivable turnover ratio of your target company with its competitor. Any significant difference is grounds for written investigation and interpretation.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.1pt; text-align: justify; vertical-align: baseline;"><span style="font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: normal; line-height: 150%;">Ratios are used to normalize line-item differences for companies of different sizes. It is generally useful to normalize these differences by dividing by sales or total assets.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-weight: normal;"><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 16.0pt; mso-fareast-font-family: "Courier New";">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">5</span><span style="font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.1pt; text-align: justify; vertical-align: baseline;"><span style="font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: normal; line-height: 150%;">Use items that have significantly different ratios and balances in a text description of your target company. For the example, write a paragraph detailing the dollar value and ratio difference in the accounts receivable balances between the companies.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.1pt; text-align: justify; vertical-align: baseline;"><span style="font-family: 'Times New Roman', serif; font-size: 16pt; font-weight: normal; line-height: 150%;">Next, explain why you believe this difference exists. Note that your explanation is generally a matter of subjective interpretation, but the dollar and ratio differences are matters of objective fact. However, if the numeric calculations are accurate, your interpretation will be grounded by factual observation and thus form the key component of your financial statement analysis.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: windowtext; border-bottom-style: none; border-bottom-width: 1pt; border-image: initial; border-left-color: windowtext; border-left-style: none; border-left-width: 1pt; border-right-color: windowtext; border-right-style: none; border-right-width: 1pt; border-top-color: windowtext; border-top-style: none; border-top-width: 1pt; font-family: 'Times New Roman', serif; font-size: 16pt; line-height: 150%; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"><span style="font-weight: normal;"><br />
</span> <!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 16.0pt; line-height: 150%;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%;"><span lang="SQ" style="font-family: 'Times New Roman', serif; font-size: 16pt; line-height: 150%;"><o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-76442186116202834552012-02-12T17:21:00.001+01:002012-02-12T17:21:00.368+01:00How to Write a Final Audit Report<h2 style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; margin-top: 0in; text-align: justify; vertical-align: baseline;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; margin-top: 0in; vertical-align: baseline;"></h2><h2 style="background: white; line-height: 200%; margin-top: 0in; text-align: justify; vertical-align: baseline;"><span lang="SQ" style="background: white; color: #262626; font-family: "Times New Roman","serif"; font-size: 18.0pt; font-weight: normal; line-height: 200%; mso-bidi-font-weight: bold; mso-themecolor: text1; mso-themetint: 217;">The purpose of an audit report is to evaluate a project a company is implementing or trying out. Projects can include new software systems, a new customer service approach or a new marketing campaign to attract customers. A final audit report is the last report in the auditing and implementation process to determine whether or not the project in question needs adjustments prior to implementation. The final audit report has the same sections and discussions as a regular audit report, as it needs to address the concerns brought up in earlier audit reports for the project in question.</span><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;"><br />
<span style="border-color: initial; border-image: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"></span></span><span lang="SQ" style="background: white; border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;"><br />
</span><span class="line"><span lang="SQ" style="border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; font-weight: normal; letter-spacing: -.9pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;">Instructions</span></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; font-weight: normal; letter-spacing: -.9pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></h2><section style="border-bottom-width: 0px; border-color: initial; border-image: initial; border-left-width: 0px; border-right-width: 0px; border-style: initial; border-top-width: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 13px; font-weight: normal; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: initial; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; vertical-align: baseline;"> <div class="MsoNormal" style="line-height: 200%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span lang="SQ" style="color: #262626; font-family: "Courier New"; font-size: 10.0pt; line-height: 200%; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New"; mso-themecolor: text1; mso-themetint: 217;">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span class="stepnumber"><span lang="SQ" style="border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;">1</span></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></div><div style="border-color: initial; border-image: initial; border-style: initial; font-style: inherit; line-height: 200%; margin-bottom: 8.9pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; text-align: justify; vertical-align: baseline;"><span style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;">Compose a front page for the final audit report. Ensure that it has the title "Final Audit Report" and write the name of the project being discussed in the report. You should also include the name of the department and the person who is responsible for the auditing process. On the second page, start an index page, which should be updated as the report progresses.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 200%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span lang="SQ" style="color: #262626; font-family: "Courier New"; font-size: 10.0pt; line-height: 200%; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New"; mso-themecolor: text1; mso-themetint: 217;">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span class="stepnumber"><span lang="SQ" style="border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;"><span style="border-color: initial; border-image: initial; border-style: initial; float: left; font-style: inherit; min-height: 35px; outline-color: initial; outline-style: initial; outline-width: 0px;">2</span></span></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></div><div style="border-color: initial; border-image: initial; border-style: initial; font-style: inherit; line-height: 200%; margin-bottom: 8.9pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; text-align: justify; vertical-align: baseline;"><span style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;">Write an executive summary for the final audit report outlining the key points of the report. Write this section last, but place it after the index page. You should focus on the key points leading up to the final decision by highlighting the objectives of the audit project, final tests and results.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 200%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span lang="SQ" style="color: #262626; font-family: "Courier New"; font-size: 10.0pt; line-height: 200%; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New"; mso-themecolor: text1; mso-themetint: 217;">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span class="stepnumber"><span lang="SQ" style="border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;"><span style="border-color: initial; border-image: initial; border-style: initial; float: left; font-style: inherit; min-height: 35px; outline-color: initial; outline-style: initial; outline-width: 0px;">3</span></span></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></div><div style="border-color: initial; border-image: initial; border-style: initial; font-style: inherit; line-height: 200%; margin-bottom: 8.9pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; text-align: justify; vertical-align: baseline;"><span style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;">Compose a background section for the final audit report. The background section should focus on the purpose of the initial project, the information presented in previous audit reports and what changes have been made leading up to the final audit report. This should provide new readers with all of the background information leading up to this final report.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 200%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span lang="SQ" style="color: #262626; font-family: "Courier New"; font-size: 10.0pt; line-height: 200%; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New"; mso-themecolor: text1; mso-themetint: 217;">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span class="stepnumber"><span lang="SQ" style="border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;"><span style="border-color: initial; border-image: initial; border-style: initial; float: left; font-style: inherit; min-height: 35px; outline-color: initial; outline-style: initial; outline-width: 0px;">4</span></span></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></div><div style="border-color: initial; border-image: initial; border-style: initial; font-style: inherit; line-height: 200%; margin-bottom: 8.9pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; text-align: justify; vertical-align: baseline;"><span style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;">Compose a list of the objectives of the final audit report. The objective of a final audit report should focus on finding out what needs to be changed in order for the project to be completed. The objectives should be in the last stages of implementation, rather than focus on starting new projects.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 200%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span lang="SQ" style="color: #262626; font-family: "Courier New"; font-size: 10.0pt; line-height: 200%; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New"; mso-themecolor: text1; mso-themetint: 217;">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span class="stepnumber"><span lang="SQ" style="border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;"><span style="border-color: initial; border-image: initial; border-style: initial; float: left; font-style: inherit; min-height: 35px; outline-color: initial; outline-style: initial; outline-width: 0px;">5</span></span></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></div><div style="border-color: initial; border-image: initial; border-style: initial; font-style: inherit; line-height: 200%; margin-bottom: 8.9pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; text-align: justify; vertical-align: baseline;"><span style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;">Outline any new methods used in the final stages of the auditing process. Explain these new methods in detail and the justification of why these new methods were used, so readers understand how these methods feed off older results. If the methods are the same as the ones used in previous audit reports, then mention that fact.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 200%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span lang="SQ" style="color: #262626; font-family: "Courier New"; font-size: 10.0pt; line-height: 200%; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New"; mso-themecolor: text1; mso-themetint: 217;">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span class="stepnumber"><span lang="SQ" style="border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;"><span style="border-color: initial; border-image: initial; border-style: initial; float: left; font-style: inherit; min-height: 35px; outline-color: initial; outline-style: initial; outline-width: 0px;">6</span></span></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></div><div style="border-color: initial; border-image: initial; border-style: initial; font-style: inherit; line-height: 200%; margin-bottom: 8.9pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; text-align: justify; vertical-align: baseline;"><span style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;">Write the final results of the auditing process. The results should indicate whether the project in question is a success or something that is better left for a later date. For example, if the results of the various tests showed that not everyone was pleased with the new software system, it may not be the best idea to implement it until the concerns have been addressed. The final results should provide an answer, rather than raise questions for the reader.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 200%; margin-bottom: .0001pt; margin: 0in; mso-list: l0 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -.25in; vertical-align: baseline;"><!--[if !supportLists]--><span lang="SQ" style="color: #262626; font-family: "Courier New"; font-size: 10.0pt; line-height: 200%; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New"; mso-themecolor: text1; mso-themetint: 217;">o<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;"> </span></span><!--[endif]--><span class="stepnumber"><span lang="SQ" style="border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;"><span style="border-color: initial; border-image: initial; border-style: initial; float: left; font-style: inherit; min-height: 35px; outline-color: initial; outline-style: initial; outline-width: 0px;">7</span></span></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></div><div style="border-color: initial; border-image: initial; border-style: initial; font-style: inherit; line-height: 200%; margin-bottom: 8.9pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; outline-color: initial; outline-style: initial; outline-width: 0px; text-align: justify; vertical-align: baseline;"><span style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;">Write a conclusion for the final audit report. The conclusion should indicate the final answer or approach of the project. If the project is a success, the conclusion should indicate the next step or implementation procedure. If the audit project is not a success, the conclusion should address the reasons why the project did not succeed and what can be changed so the project can be a success after adjustments have been made.<o:p></o:p></span></div></section><span style="border-color: initial; border-image: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"> <div class="MsoNormal" style="line-height: 200%; text-align: justify;"><span lang="SQ" style="background: white; border: none windowtext 1.0pt; color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-border-alt: none windowtext 0in; mso-themecolor: text1; mso-themetint: 217; padding: 0in;"><br />
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<!--[endif]--></span><span lang="SQ" style="color: #262626; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 200%; mso-themecolor: text1; mso-themetint: 217;"><o:p></o:p></span></div></span><span style="border-color: initial; border-image: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"><div class="MsoNormal" style="line-height: 150%;"><span lang="SQ" style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><o:p></o:p></span></div></span><section style="background-color: white; border-bottom-width: 0px; border-color: initial; border-image: initial; border-left-width: 0px; border-right-width: 0px; border-style: initial; border-top-width: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 13px; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: initial; outline-width: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left; vertical-align: baseline;"> </section><span style="border-color: initial; border-image: initial; border-style: initial; outline-color: initial; outline-style: initial; outline-width: 0px;"></span>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-76521354939430496622012-02-08T16:50:00.000+01:002012-02-08T16:50:26.181+01:00How to Write a Financial Analysis Report<div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; text-align: justify;"></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Accurately and honestly communicating your company's strengths and weaknesses will help convince investors to throw their money behind your business. A financial analysis report is a document that will be of great interest to investors since it contains a detailed assessment of your company's financial health. Write a financial analysis report comparing costs and benefits, translating these concepts into real dollar amounts. Rather than glossing over economic challenges, openly admit threats to the company's well-being without fear of chasing stakeholders away. Professional market-watchers who are likely to invest understand that costs and income often depend on variables such as global markets. A transparent and objective assessment of your company's finances will serve as a reliable source, enticing investors to take a deeper look.<o:p></o:p></span></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; vertical-align: baseline;"><span style="font-family: Arial, sans-serif; font-size: 14pt; letter-spacing: -0.9pt; line-height: 150%;">Instructions<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; vertical-align: baseline;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">1</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Begin the report with an "Executive Summary" of key findings from the financial analysis. State the time period the study focused on. Identify the firm requesting the report.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">2</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Prepare an introduction that emphasizes the report's objectives. Define financial terms necessary to understanding those objectives. For example, a reporting objective might be to measure a firm's cost-benefit ratio. That would require the report also define terms like "project costs" that help to clarify the main points.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">3</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Move on to a section titled "Resources." Write a general description of the data analyzed and where it came from. Examples of resources include income statements, balance sheets, inventory ratios, operating costs and warehouse statistics.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">4</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Describe resources further under the heading "Method of Collecting Data." State whether data was provided by different sources, such as government agencies or departments within the company. Explain each source's method for reporting data. Discuss how the analysis accounted for these distinct reporting methods.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">5</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Call the next section "Significant Financial Events." Enumerate events that occurred during the time period studied and that altered results. For example, unrealized gains on stock sales during the past year might explain the company's unexpected rise in revenue. Then, identify offsets to that rise in income.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">6</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Continue with a section titled "Detailed Results." Provide a comprehensive analysis of investment returns, income statements, balance sheets and productivity ratios. Comment on each of these factors and provide support for your statements with tables and graphs.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">7</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Compare results from different quarters in a section called "Analysis of Variance." For example, contrast fourth quarter sales to average sales.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">8</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Create an appendix for "Financial Revenues." Define how that term was used to prepare the report. Tabulate the revenues over the time period of the analysis. For example, the report might chronicle plywood sales for all contracts in a given year. Distinguish between the amount of plywood actually sold in the year and the amount provided for in contracts signed that year.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in; vertical-align: baseline;"><!--[if !supportLists]--><span style="font-family: "Courier New"; font-size: 10.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: "Courier New";">o<span style="font: 7.0pt "Times New Roman";"> </span></span><!--[endif]--><span style="color: #409eff; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">9</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 8.9pt; vertical-align: baseline;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Finish the report with an appendix for "Observations." Discuss any problems encountered in analyzing the data, then explain how the research method handled the problems. Conclude with a statement that projects future performance based on past results.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%;"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: windowtext; border-bottom-style: none; border-bottom-width: 1pt; border-image: initial; border-left-color: windowtext; border-left-style: none; border-left-width: 1pt; border-right-color: windowtext; border-right-style: none; border-right-width: 1pt; border-top-color: windowtext; border-top-style: none; border-top-width: 1pt; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"><br />
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<!--[endif]--></span><span lang="SQ" style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-61476712111405706402012-02-03T13:22:00.000+01:002012-02-03T13:22:00.111+01:00Set the Right Price for Your Service<div class="MsoNormal" style="background: white; line-height: 150%; text-align: justify;"><b><span lang="SQ" style="color: #666666; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Don't go too high or too low, or customers won't buy what you're offering.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 150%; text-align: justify;"><b><span lang="SQ" style="color: #666666; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><br />
</span></b></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Without a doubt, one of the hardest parts of starting a consulting or professional practice is the art (there is no science) of pricing your services, the subject of this week's e-mail: "I've just left corporate America and am starting my own consulting business. There's a fair amount of competition in my area, but I'll be working out of my home with low overhead, and I'm thinking of offering really low prices to my customers, like 50 percent of what my competition charges, in the hopes that once I become more established in my practice I'll be able to raise them. Do you think this is a viable strategy?"<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">When you start any business, there's always a certain amount of insecurity (OK, terror) about just how good you really are. You lie awake at nights asking "Will people actually part with their hard-earned money to buy what I have to offer?" It's very tempting to sell yourself short and offer your services at rates significantly below the market in an effort to get business--any business--in your front door.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">But let me ask you a question. Let's say you were thinking of hiring me as a consultant, and I told you my rate was $10 an hour. You have spoken to other consultants who quoted you $200 to $300 an hour for the same services. Tell me the truth: Would you be jumping up and down for joy, thinking that you have been offered the deal of your life? If you are like most people, you would be very suspicious of my offer. You would be thinking either:<o:p></o:p></span></div><ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="background: white; color: #252525; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">This deal is too good to be true--I'd better check this guy out thoroughly; or<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #252525; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">This guy is so naive or desperate for business that if I bargain hard with him, I'll probably end up getting the services I need for nothing.<o:p></o:p></span></li>
</ul><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Either way, I am not going to get what I want out of this relationship.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">There's another drawback to low-ball pricing. Let's say your competition is charging an average of $200 an hour. You price yourself at $100 an hour, and you get tons of business. Now you want to raise your fees to $125 an hour. How do you think your clients will react to that, once they have become accustomed to paying $100 an hour? Believe it or not, even though at $125 an hour your clients are still getting a tremendous deal, they probably will yell and scream that you are raising your fees by 25 percent in a difficult economy. Try it, and see what happens.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">It's a lot easier to overprice your services and offer discounts to your clients--that way, the clients perceive that they are getting a deal, and you are still getting a market rate for your services--than it is to underprice your services in the hopes of increasing them later once the clients are "hooked" on your way of doing things.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">This doesn't mean that you should price higher than your competition, in the hopes people will perceive you as the "gold standard" of your profession. Some people do think that high prices equal superior quality, but they usually aren't the clients you want to attract. Remember, you are an unknown quantity at this point.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">What I would do, if I were in your shoes, is find out exactly what your competition charges, and price yourself at 80 to 90 percent of what they charge. Then, if you sense a customer wants an even lower price, you can offer a one-time, "new client" discount, or perhaps a flat fee, on the first job you do for them. This will send the desired signal that you are eager for their business and are flexible in your pricing, while also communicating that sooner or later the client will be asked to pay something close to market rates.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">There is always the risk that you will overprice your services at some point. Just keep in mind two important truths. If you do not charge what you are worth:<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><b><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">1.</span></b><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"> You are guaranteed to burn out quickly; and<br />
<b>2.</b> You will resent your customers for not providing you with a decent living and start treating them like dirt--a sure formula for failure.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-59154027004658846752012-02-01T13:19:00.000+01:002012-02-01T13:19:00.665+01:00FOLLOW THE MONEY<div class="MsoNormal" style="background: white;"><b><span lang="SQ" style="color: #666666; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 115%;">To increase sales, learn what customers want to buy.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b><span lang="SQ" style="color: #666666; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 115%;"><br />
</span></b></div><div class="MsoNormal" style="background: white;"></div><div style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">In the turmoil of today's economy--up and down Main Street and across the nation and globe--business owners are scrambling to get a handle on what customers want so they can steer their way back to higher volume and greater profitability. They seek advice from employees, consultants, suppliers and investors. They experiment with price cuts and promotions. They test new solutions on a daily, if not hourly, basis. Sound familiar?<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; outline-color: initial; outline-style: none; outline-width: initial; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Here's a different approach: Let your customers point the direction. Customers tell you what they want and what they're willing to spend money on. In fact, you already have access to their answers if you simply study your sales records. They'll reveal what people are buying more of and less of from your business. With that information, you can adapt your offerings and promotions so you back your winners, revamp your losers, and meet your market's interests head-on. Follow these steps:<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; outline-color: initial; outline-style: none; outline-width: initial; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Get specific when analyzing your sales. List the products or services your business sells. For example, a bookstore might sell new books, used books, audio books, magazines, greeting cards, eyeglasses, writing supplies and coffee shop offerings. A restaurant's product categories might include breakfasts, lunches, dinners, happy hours, bar business, group events, catering, to-go orders and gift shop sales.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; outline-color: initial; outline-style: none; outline-width: initial; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Once you create a list of revenue streams for your business, tally up how much each category generated in sales this year compared to last year, and this quarter compared to last quarter. By tracking which product lines are increasing and decreasing in sales, you can practically read your customers' minds. Their purchasing activities can help you adapt your business to promote what they're telling you--through their purchases--they're willing to buy.<o:p></o:p></span></div><div style="background: white; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Draw some early conclusions. Your sales history is almost certain to contain surprises about your customers, and those surprises hold the keys to opportunity. For instance, some pet stores are seeing unexpected upticks in sales of items related to backyard chicken flocks. Nurseries are seeing increases in sales of vegetable garden supplies. In some regions, where retail gift shops have been forced to close, longstanding outdoor or sporting goods stores are seeing a surge in sales of gift items. Where you see shifts in buying patterns, adapt your offerings to address evolving customer preferences. You just might open a new niche and ride a market trend to increased sales and profitability.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; outline-color: initial; outline-style: none; outline-width: initial; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Test your premises. Don't focus on what isn't selling in your business; focus on what is selling to your customers, and then test how you could sell more of whatever it is people are actually buying.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; outline-color: initial; outline-style: none; outline-width: initial; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">You don't have to upend your business to see if a change of course might work wonders. For example, no one would advise a pet store manager to bet the farm on a resurgence of backyard chicken flocks, but if sales receipts show growing interest, why not test the market with well-positioned displays, how-to seminars, and communications that promote chicks, coops, books and related items?<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; outline-color: initial; outline-style: none; outline-width: initial; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Talk to loyal customers. If you're uncertain whether the sales surge you've seen is a one-time fluke or the beginning of a trend, talk to your loyal customers. For example, by listening to their audiences, symphonies and museums across the country have learned that memberships and season ticket sales are up because--especially in the current environment--customers desire the steadiness of institutions and events that they value, trust and can escape into. Many of those same organizations feature the words of their strongest supporters as they invite more patrons into the fold.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 11.55pt; margin-left: 0in; margin-right: 0in; margin-top: 11.55pt; outline-color: initial; outline-style: none; outline-width: initial; text-align: justify;"><span style="color: #252525; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Don't wait for change: Make it happen. Begin today to study what is and isn't selling. Then find one or a few pockets of growth, verify your findings by talking with customers, and take action to adapt your business to changing market tastes and trends. What's to lose? The only way your business will experience different results is by doing things differently. Let your customers lead the way.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-11847113230133027662012-01-30T13:17:00.001+01:002012-01-30T13:17:00.437+01:00ENTERPRISE VALUE<h2 style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span lang="SQ" style="color: #4d4a42; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-bidi-font-weight: normal;"><span style="font-weight: normal;"><i>Determining the Takeover Value of a Company</i></span><o:p></o:p></span></h2><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><br />
</div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">If you frequently read financial magazines, newspapers, and </span><u><span style="color: #3366cc; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">annual reports</span></u><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">, you have no doubt come across something called enterprise value. You may have wondered what it is, how it’s calculated, and why it’s so important.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: .25in; mso-outline-level: 3; text-align: justify;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">What is Enterprise Value?<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Enterprise value is a figure that, in theory, represents the entire cost of a company if someone were to acquire it. Enterprise value is a more accurate estimate of takeover cost than </span><u><span style="color: #3366cc; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">market capitalization</span></u><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"> because it takes includes a number of important factors such as </span><u><span style="color: #3366cc; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">preferred stock</span></u><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">, </span><u><span style="color: #3366cc; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">debt</span></u><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">, and </span><u><span style="color: #3366cc; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">cash reserves</span></u><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"> that are excluded from the latter metric.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: .25in; mso-outline-level: 3; text-align: justify;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">How is Enterprise Value Calculated?<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Enterprise value is calculated by adding a corporation’s market capitalization, preferred stock, and outstanding debt together and then subtracting out the cash and cash equivalents found on the </span><u><span style="color: #3366cc; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">balance sheet</span></u><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">. (In other words, enterprise value is what it would cost you to buy every single share of a company’s common stock, preferred stock, and outstanding debt. The reason the cash is subtracted is simple: once you have acquired complete ownership of the company, the cash becomes yours). Let’s examine each of these components individually, as well as the reasons they are included in the calculation of enterprise value:<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: .25in; text-align: justify;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Market Capitalization</span></b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">: Frequently called “market cap”, market capitalization is calculated by taking the number of outstanding shares of common stock multiplied by the current price-per-share. If, for example, Billy Bob’s Tire Company had 1 million shares of stock outstanding and the current stock price was $50 per share, the company’s market capitalization would be $50 million (1 million shares x $50 per share = $50 million market cap).<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: .25in; text-align: justify;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Preferred Stock</span></b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">: Although it is technically equity, preferred stock can actually act as either equity or debt, depending upon the nature of the individual issue. A preferred issue that must be redeemed at a certain date at a certain price is, for all intents and purposes, debt. In other cases, preferred stock may have the right to receive a fixed dividend plus share in a portion of the profits (this type is known as “participating”). Regardless, the existence represents a claim on the business that must be factored into enterprise value.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: .25in; text-align: justify;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Debt</span></b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">: Once you’ve acquired a business, you’ve also acquired its debt. If you purchased all of the outstanding shares of a chain of ice cream stores for $10 million (the market capitalization), yet the business had $5 million in debt, you would actually have expended $15 million; $10 million may have come out of your pocket today, but you are now responsible for repaying the $5 million debt out of the cash flow of the business – cash flow that otherwise could have gone to other things.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: .25in; text-align: justify;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Cash and Cash Equivalents</span></b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">: Once you’ve purchased a business, you own the cash that is sitting in the bank. After acquiring complete ownership, you can simply take this cash and put it in your pocket, replacing some of the money you expended to buy the business. In effect, it serves to reduce your acquisition price; for that reason, it is subtracted from the other components when calculating enterprise value.<o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: .25in; margin-left: 0in; margin-right: 0in; margin-top: .25in; mso-outline-level: 3; text-align: justify;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Why Is Enterprise Value Important?<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 150%; text-align: justify;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Some investors, particularly those that follow a </span><u><span style="color: #3366cc; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">value philosophy</span></u><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">, will look for companies that are generating a lot of cash flow in relation to enterprise value. Businesses that tend to fall into this category are more likely to require little additional reinvestment; instead, the owners can take the profit out of the business and spend it or put it into other investments.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-47837162708605402282012-01-27T16:47:00.000+01:002012-01-27T16:47:56.840+01:00Eight Reasons to Move Albania to the Top of Your Travel List<div style="background: white; line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;"><span style="color: #262626;">Tell someone you’re traveling to Albania, and you’re likely to get asked a couple of questions. “Where is Albania?” “Is it dangerous?” “What are you going to do there?” and most common of all, “Why?”<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">The tiny, often misunderstood Balkan state is located across the Adriatic Sea from Italy, directly above Greece. The mountainous country is filled with pristine rivers and sparkling mountain springs, bustling cities and charming towns, and its rocky coastline stretches hundreds of kilometers along both the Adriatic and Ionian Seas, providing stunning beaches that rival those of its better-known neighbors like Greece, Italy, and Croatia. But Albania’s status as one of Europe’s poorest countries and its slightly checkered past mean that mention of its name is more likely to elicit thoughts of riots and communist dictatorships than beautiful beaches and the vibrant café culture of Tirana, the country’s capital.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">But Albania is changing. Today the country is being built up fast by a people eager to recover from almost 50 years of an oppressive communist dictatorship and the unrest that accompanied its transition to democracy. Today’s Albania offers young, lively cities, incredibly beautiful natural scenery, and an extremely open and friendly people eager to show off their country, all at a price that can’t be found elsewhere on the continent. What’s more, Albania remains one of the few undiscovered paradises in Europe. But like Croatia before it, it’s only a matter of time before the wandering masses start to pour in. Here are eight reasons why you should buy your ticket, pack your bags, and beat the crowds to this remarkable Balkan nation.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">1. The lek</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Albania joined NATO in 2009 and has its eye on EU membership as well, but it will be at least a few more years before it’s accepted into the Euro zone. The official currency there today is the lek, and the exchange rate between it and other major world currencies alone should be enough to draw hoards of international tourists to Albania.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">At first glance, the prices in Albania may not seem so amazing. Three hundred lek for a pizza or 2,000 lek for a night in a hotel room might seem a little steep to the uninitiated. Consider the exchange rate and you’ll begin to understand: at the time of writing, one Albanian lek (sometimes also written as leke) was equivalent to just under a cent, or 0.009 dollars. So that 80 lek ice cream cone? That will set you back about 75 cents. That 1,800 lek double occupancy ensuite hotel room with a view of the beach in Vlora? It’s a bargain at just under $17. And that dinner of steamed mussels and a bottle of Albanian white wine for two on the beach in Ksamili? At about 600 lek, you’ll be spending approximately six dollars total.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Beer and coffee can often serve as budgetary gauges for international travelers, and you’ll be happy to hear that it’s rare to pay over a dollar for either (usually closer to 45 cents for the coffee), provided that you go for the typical Albanian bottled beer or a shot of the strong, thick espresso that the locals drink.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">2. The beaches</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">The beaches in Albania rival anything that can be found in Europe, and with 362km of coastline stretching through both the Adriatic and Ionian Seas, beachgoers have plenty of sandy spots to pick from.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Dhermi, Himara, and Ksamili are some of the names that one might uncover with an online search or a peek into a guidebook, and they are all beautiful. A lot of the bigger coastal cities like Saranda and Vlora also have beaches accessible on foot from the city center, though I’d recommend skipping the city beaches as they are usually a bit dirty, very developed, and quite busy. Traveling a bit outside of the cities (particularly heading south out of town) is a surefire way to find some beautiful beaches that are less crowded and cleaner, but still easy to reach by taxi or bus.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Many of the country’s very best beaches are further afield, away from the newly constructed hotels and restaurants springing up around the coastal cities and bigger towns. There are literally hundreds of coves, caves, and sandy stretches where you can laze away a day, or more if you bring a tent and supplies. Private paradises like the little cove pictured above (a personal favorite, known as Aquarium) are just waiting to be discovered, and intrepid travelers are sure to have their curiosity rewarded if they choose to hop off the bus or wander down a dusty goat path in search of something a bit different.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">But if isolation and a lack of amenities aren’t your idea of a good time, you’ll still have plenty of options throughout the region. The beach at Dhermi is just as clear and sparkling as Aquarium, though they offer a completely different experience. With a slew of hotels packed tightly into the hills above the water, there is no lack of places to stay, and a number of restaurants, including the excellent Luçiano (of the Hotel Luçiano), offer fresh fish, a variety of pizzas and other Italian-style dishes at extremely reasonable prices. Visitors in June and early July will be pleasantly surprised by the lack of other visitors on the beach, though the area heats up a bit in late July and August, with concerts at the nightclub Havana, right on the sand, bringing in plenty of visitors from throughout Albania and abroad.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Though the available resources are far from comprehensive, it is easy to find great beaches in Albania with the help of Google or a guidebook, and wherever you end up, you probably won’t be disappointed. An excellent research tool is a online wikimap that shows the locations of a lot of beaches you won’t find described elsewhere on the internet, including Aquarium. Many of these locations won’t be reachable by public transit, and some of them might even require a bit of hiking to get to, but knowing where they are and having an idea of which stretches of coastline are the most promising will increase your chances of visiting one of the country’s most spectacular beaches.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">3. The cities</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Albania is also home to a surprising number of vibrant cities that offer an urban travel experience completely different from what can be found elsewhere in Europe. In Tirana, uninspired blocks of austere communist-era apartments sprawl outwards from the center of the city, sprinkled here and there with an ornate old mosque or bustling outdoor market. Amidst the old, however, newer structures are going up at an alarming rate, filling in the cities’ formerly empty spaces with a shocking number of sleek new bars and modern restaurants. In the capital especially, visitors will find a bustling nighttime scene, and in the summer dozens of cafes and bars along tree-lined streets like Ismail Qemali spill out into the largely pedestrianized roads, offering comfortable outdoor lounge areas that all seem brand new and impeccably clean, contrasting starkly with the city’s more run-down neighborhoods and crowded main roads. Even in the flashier establishments, drink prices remain reasonable and the crowds laid back.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Other destinations, such as the “museum cities” of Berat and Gjirokastra, provide a peek into the finer moments of Albania’s history through their winding cobblestone streets and well-preserved Ottoman architecture.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Even if the lively nightlife and lovely historical charm of Albania’s cities isn’t enough to draw you in, you’ll have a hard time avoiding them if you’re traveling by bus or furgon. The flexibility and frequency of departures and arrivals makes quick visits to the different cities possible, so it’s easy to stop in Saranda for lunch, or spend a few hours checking out Berat’s charming cobblestone backroads before getting back on the road.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">4. Transportation</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Albania’s public transportation system is mind-boggling at fist, but once you get a hang of it, you’ll realize that the spontaneous, slightly unorganized nature of it all makes it extremely favorable for impromptu travels and unplanned side trips.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Backpackers basically have three options for getting around: bus, furgon (also known as mini-bus), and taxi (a fourth, rarely used option is the excruciatingly slow train system). Buses are the safest and most reliable way to get around, though their schedules tend to be more limited than the furgons, which are basically large vans that start their routes earlier and end later than the buses do. Furgon drivers have a reputation for going very fast and not always following the rules of the road, but if you’re looking to get somewhere quick, hop on a furgon (and hope it has seatbelts).<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">If you’re taking either of these options, the important thing to know is where the driver is headed. The destination city will usually be posted on the windshield, though occasionally there’s nothing at all. In those cases, looking a bit lost and a bit foreign usually cues a barrage of helpful drivers, all yelling out their destination city, which makes finding the right bus pretty easy.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">It’s also good to know that you can get on and get off where you like, so if you see the bus or van you want driving by, flag it down! They’ll stop if there’s room for you. And if you’re on the bus and you spot a pretty beach or nice little town, just shout and they’ll let you off. This makes it easy to be spontaneous while traveling in Albania, but keep an eye on the clock, because it gets harder to grab a ride as the day goes on and you might find yourself stranded if you wait until early evening to look for a furgon. This unofficial schedule provides a loose idea of when buses leave from the major cities.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">When there’s no bus or furgon to be found, taxis offer a surprisingly affordable mode of transportation. As an example, the going rate for the hour and a half trip from Vlora to Dhermi was about 40 dollars, and getting to any of the nice beaches outside of Saranda, Vlora, or Himara would likely cost little more than a couple of bucks. Scheduling a pick-up gets more complicated, so keep that in mind when visiting destinations off the main roads. Hitchhiking is very common for locals as well as tourists, so in more remote areas, including the road leading to the Blue Eye, don’t be surprised if you’re offered a ride, even if you’re not holding up your thumb.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">5. The people</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">After many years of isolation under communist rule, Albanians were finally allowed to travel internationally in 1990. Those restrictions, as well as the lack of international visitors to the country in recent decades, have limited the exposure that many Albanians have had to different cultures, languages, and people. Many of the people who I met on our trip were genuinely interested in why I was visiting their country and where I came from, which is a welcome change from the reception that many travelers receive in the more heavily visited tourist destinations of the world.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Within minutes of boarding my first bus in Albania, I was sharing water and Skittles with the driver and several passengers, helping a few young girls practice their English skills, and saying hi to a relative of an elderly passenger who had called her family on her cell phone to tell them that she had met two Californians on the bus. It was an experience that I had never had on my travels before and haven’t had since, and it certainly helped to take my mind off the five hours I spent on a rickety old bus between Tirana and Vlora.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">English is spoken by many young Albanians, but it’s surprisingly easy to find Italian-speakers of all ages throughout the country, and much of my communication during my travels was a curious mix of botched Italian sprinkled with Spanish, an English word here or there, <em>falëminderit</em> (which means thank you in Albanian), and a lot of gesturing and the occasional drawing. In general, people were patient and extremely helpful with my attempts to communicate, and putting the extra effort into talking with locals provided me with some of the more memorable moments of my trip, though brushing up on a few key Albanian words would be helpful, if you can manage the tricky pronunciation.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">6. The nature</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Even if the people weren’t so friendly, the beaches so beautiful, and the cities so unique, Albania would still have plenty to offer. Being one of Europe’s most mountainous countries means that a fantastic view is never far away, and traveling any of the country’s twisting-turning mountain roads practically guarantees spectacular scenery all along the way. The drive from Vlora to Dhermi is particularly enjoyable, offering vistas of the wild Karaburun peninsula across the Bay of Vlorë, as well as lagoons, beaches, and the heavily wooded national park that lies just south of the city.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">But while the great views and pretty scenery are basically unavoidable, other places will need to be sought out. One of those places is known as the Blue Eye. It’s called Syri i Kaltër in Albanian, but locals will recognize the name in English. Located just outside of Saranda on the way to Gjirokastra, the Blue Eye is a freezing cold underwater spring with an unbelievable sapphire color. The river that flows downward from the spring is some of the clearest, cleanest water you will ever see, and just laying eyes on the thousands of gallons of ice cold water gushing out of the center of the Eye is worth the trek it takes to get there.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">The Eye is located outside of Saranda, just off the road to Gjirokastra. Ask the bus driver to drop you there, then follow the signs. It’s a good distance from the main road to the spring itself, so go early and keep your fingers crossed that a passing driver will pick you up, or plan to stay the night at the rustic hotel near the spring. The restaurant and bar located alongside the river serves excellent roasted lamb ribs and cold beer, so bring your appetite and prepare to take in some of the most incredible scenery you’ve ever seen while chowing down on a local specialty.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">7. The food</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Due to its largely Muslim population, lamb is often the meat of choice on Albanian menus, and the spit-roasted variety is a favorite in many Albanian cities. Other meats are frequently available, but the lamb is good and almost always locally raised, so it’s definitely worth a try.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Coastal cities offer a plethora of fresh, local seafood, often pulled right out of the water. If you can figure out how to ask or gesture, it’s a good idea to ask to see the catch of the day. It’s not unusual to get to pick your dinner out of a basket of freshly caught fish, and taking recommendations from the staff is sure to land you a tasty meal. A dinner of fresh fish will usually be the priciest option on the menu, but at a pretty consistent nine dollars per serving, it’s worth the splurge.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Vegans and vegetarians will appreciate the bounty of fresh fruits and vegetables that Albania’s farms produce, most of which is locally and organically grown, only because many small farmers can’t afford to buy pesticides and fertilizers. Greek salad is a staple on most menus, and the mix of fresh cucumbers, onions, peppers, and tomatoes, topped with olives and homemade feta will probably be one of the most flavorful salads you’ve ever had, wherever you end up ordering it.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">If you’re not an adventurous eater, don’t worry. Albania’s proximity to Italy means that pizza and pasta make up a considerable portion of most restaurants’ offerings, and even in Albanian it’s easy to read the Italian items off the menu. Albanian food in general tends to resemble Greek cuisine, so even if you’ve never eaten at an Albanian restaurant, you’ll probably recognize many of the dishes. Most restaurants won’t have a foreign language menu, so familiarizing yourself with a few key items to order—or avoid, is probably a good idea. Era restaurant in Tirana is an exception, they have an English menu and a huge selection of Albanian specialties and Italian basics, so it’s a great way to get acquainted with what’s on offer throughout the rest of the country.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Albanian beers like Korça or Tirana are just as good as the international options, at a much lower price, and strong black coffee and the white wines of the country’s northern regions provide a good selection of local drinking options. The water is safe to drink, though more sensitive stomachs might want to be a little more careful and stick to the bottled stuff.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">And the best part of all—the prices. Eating well in Albania is extremely easy when an entire pizza or plate of risotto costs about four dollars, and a full, fancy meal for two with drinks is easy to come by at under ten.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">8. The history</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">When you’re all beached out and full of all the fine food and drink that the country has to offer, spend some time in Albania’s historical sites. Many of the castles and ruins throughout the country give visitors a much more up close and personal view of history than what’s available in other European countries. You won’t find any guard rails or roped-off areas in the fortresses at Porto Palermo or Gjirokastra, where visitors are more than welcome to climb over stone walls and crawl into dark little passages, and in Berat, there are over 200 people still living inside the walls of the city’s old fortress, many in beautifully maintained Ottoman-era homes that offer great views of the river valley below.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Ali Pasha’s fortresses are a must see for kids and adults alike, and the slightly overgrown, poorly lit interiors really makes it feel like you’re stepping back in time when you enter into the dark, musty halls. In Gjirokastra, the fortress is home to a collection of heavy artillery from WWII, as well as a U.S. Air Force plane rumored to have been brought down while spying on the country in the 1950s.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">The city of Butrint, just outside of Saranda, is home to a spectacular array of ruins spanning a 2,500 year period that includes the Roman era and earlier. In the summer, theatre performances are occasionally held on a wooden stage in the old amphitheatre, which is partially filled with water, but Butrint is a pleasant place to visit any day of the year, and the combination of architectural styles are fascinating, especially if you luck out and get a working archaeologist as your tour guide.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">A more recent historical relic that you won’t be able to avoid on your travels throughout the country is a reminder of some of the darker moments in Albania’s past. Hundreds of thousands of mushroom-shaped concrete bunkers, installed during communist rule, dot the countryside, a tactic that the government hoped would protect the country in case of an attack from the U.S. or Britain. The bunkers were never really used, but they certainly were well constructed, so the majority of them still stand, nestled into the hills above the main roads or clustered in groups on the beaches.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><strong><span style="color: #262626;">What to know before you go</span></strong><span style="color: #262626;"><o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">If you plan on flying to Albania, you only have one option. Mother Teresa International Airport in Tirana is the country’s only one, and there are just a few airlines that fly there, including AlItalia and BelleAir. Prices out of a few European cities, especially larger Italian ones, tend to be significantly cheaper than the normal European points of departure like London or Frankfurt, so scheduling a cheap Ryanair flight to a city such as Milan and then continuing on to Tirana can often be the most cost effective option for long haul travelers.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Ferries from Italy are also a popular way to enter Albania, and there are overnight voyages that depart from Bari and Brindisi several times a week, depending on the time of year. Ferries are usually cheaper than flights at around seventy dollars each way, but the trip can take up to eleven hours, and adding the cost and time it takes to get to the Italian ports, in addition to the long boat ride, can often make flying seem a little more attractive. There is also a ferry from Corfu that sails to Saranda in about half an hour and costs about twenty-five dollars each way.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><br />
</div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">There are ATMs all over Tirana and in the other larger cities as well. Smaller destinations like Dhermi do not have ATMs or banks at all, and paying with a credit card will be nearly impossible almost anywhere in the country outside of the fanciest hotels in the capital. It’s a good idea to keep a significant amount of cash on you, and small bills are preferable. The first cash machine that most visitors will encounter is in the airport, and drawing lek from the machines with a foreign ATM or debit card isn’t any different than in other international destinations, and is probably the most economical and reliable way of changing your money.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Bargaining is common and acceptable when taxis and lodging are concerned, and it can often be quite productive. Be proactive and courteous when it comes to fixing a price, and you are likely to save a bit of your travel funds without offending anyone. Taxi drivers are especially likely to bargain because of the plethora of other inexpensive travel options available throughout the country.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">In visiting the cities, a guidebook or some kind of map will come in handy, though the use of street names is inconsistent and many hotels will rely on landmarks for directions instead of actual street names and addresses. In some of the smaller cities, it is rare to ever see a street sign, but having an idea of the lay of the land will be helpful in your attempts to navigate.<o:p></o:p></span></div><div style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 0.0001pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #262626;">Pre-departure planning for a trip to Albania can be a little frustrating due to the lack of resources available online, or anywhere for that matter. There are a few guidebooks available, and I made frequent use of the Bradt guide that I bought before my trip, though it was far from comprehensive. Having a general idea of what you want to do and see and an open mind are the best ways to prepare for your trip. I’d recommend that anyone entering the country through the capital spend their first night at the Tirana Backpackers Hostel. The first (and only) hostel in the city has a friendly English-speaking staff who are incredibly helpful and will gladly give you all the advice you need on what to see and where to go while you are in the country. They have other locations throughout Albania as well, and the 12-euro rate is a deal considering all the help they’ll be able to provide, plus free wi-fi and one euro beers at the little bar in the back.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-79315237364276361022012-01-25T13:06:00.002+01:002012-01-25T13:06:01.101+01:00ITALY ECONOMY<h2 style="background: #F7F7F7; line-height: 150%; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span lang="SQ" style="font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Italy is located in Southern Europe, a peninsula extending into the central Mediterranean Sea, northeast of Tunisia. Its terrain is mostly rugged and mountainous; with some plains, coastal lowlands and a predominantly Mediterranean climate.<o:p></o:p></span></span></h2><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Italy’s natural resources include coal, mercury, zinc, potash, marble, barite, asbestos, pumice, fluorspar, feldspar, pyrite (sulfur), natural gas and crude oil reserves, fish and arable land.<o:p></o:p></span></span></div><div style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">The Italian economy is one of the worlds most developed, the country has a high standard of living with per capita GDP higher than the EU average.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">The Italian economy is also further boosted by high public literacy and efficieny in the labor force. Italy is also the world’s fifth most visited country in the world. Due to its rich history and culture, the country is a major tourist hub throughout the year.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Italy’s population as of 2010 was 60.206 million, 8.7 percent of which are unemployed.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Italy’s unemployment rate has been on the rise in the past few years. The unemployment rate has gone up from 6.8 percent in 2008 and 7.5 percent in 2009.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">4.2 percent of the workforce is employed in agriculture, 30.7 percent in industries and 65.1 percent in services.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;"><br />
</span></span></div><h2 style="background: #F7F7F7; line-height: 150%; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span lang="SQ" style="color: #d83126; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Italy Economy: Overview<o:p></o:p></span></span></h2><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">According to the World Bank, Italy has been categorized as a country with high standards for business, investment and trade. In addition, the Italian economy is well developed and surpasses that of the UK, Germany and Greece.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">In 2010, Italy’s GDP was US$ 1,771.14 billion; down from US$ 1,813.23 billion in 2008 before the recession. However, the Italian economy remained the 11th biggest economy in the world during the financial crisis. However Italy's growth rate shrank 5 percent in 2010 and 1 percent in 2008.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">The per capita income remained high as well with the 2010 data confirming it at $30,200, slightly lower than $31,800 in 2008.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;"><br />
</span></span></div><h2 style="background: #F7F7F7; line-height: 150%; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span lang="SQ" style="color: #d83126; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Italy Economy: Diversified and Strong<o:p></o:p></span></span></h2><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">The Italian economy is highly diversified and many Italian brands and products are world famous. Ferrari is one such example. The industrial sector is well divided, based on its geography. Northern Italy is dominated by private companies whereas the South, with its fertile soil is dominated by agriculture.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">The Italian economy features a strong budget that is in consonance with global standards.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">In 2010, the country’s revenues were $960.1 billion and expenditures were $1.068 trillion. The Italian government has been very active in implementing new structural reforms overhauling costly entitlement programs and increasing opportunities for employment.</span><o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-44643876306813121142012-01-23T12:54:00.001+01:002012-01-23T12:54:00.235+01:00Emerging Market Economy<h2 style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"></h2><h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 10.65pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span lang="SQ" style="color: #262626; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Emerging Market Economies (EME’s) like China, India and the erstwhile Soviet Bloc countries are coming of age with increasing levels of its Gross Domestic Product (GDP) over the last decade. This has happened mainly due to more investments made by foreign companies in these countries.<o:p></o:p></span></span></h2><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #262626; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">The term emerging market economy was coined in 1981 by Antoine.W.van.Agtmael of the International Finance Corporation under the aegis of the World Bank. The term actually refers to developing market economies which have embarked on a slew of developmental measures until recently and are emerging in the “global economy scene.”An emerging market economy is said to have per capita incomes in the lower-middle range if calculated by world incomes at the per capita level.<o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%;"><span lang="SQ" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; color: #262626; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Emerging economies constitute about 80% of the world’s population and more than 20% of the global economy. Emerging markets have the essential characteristic of trade liberalization and opening up their economies at the global stage. This leads to many foreign goods flowing into the domestic market which now competes with locally produced articles. This increases the standard of domestically manufactured goods and services and raises their productivity and also helps to produce export quality articles.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #262626; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">One of the best examples of emerging economies is Vietnam where exports are ever increasing. This is true of most emerging markets where we see a rise in the country’s export earnings coupled with increased foreign exchange reserves, a steady inflation rate and the equity market showing sufficient stability. The exchange rates of the emerging market economies are also shown to be remarkably stable and doing well against the standard international currencies like the Dollar and the Euro.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #262626; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">Most of the emerging markets also experience an increase in value or appreciation of the domestic currency against the US Dollar which indicates the improved performance of the economy. This is no way will cause any hindrance to the international community investing in the country dependent mainly on the economic stability, the political stability and transparency in the economy. Investor confidence is seen to rise in the countries such as China, India, Brazil and Pakistan with foreign investments in infrastructural facilities seen to increase. With international investors engaging in extensive Foreign Indirect Investment (FII) in emerging market economies and putting more and more money on government bonds, the demand for those bonds are also seen to rise with the yield rates on bonds.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #262626; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">The emerging market economies such as India, Pakistan, China and Vietnam are the major success stories of the world. The increased investment on infrastructure by the foreign investors in these emerging economies has seen improved facilities and conditions here for other investors to invest in future. This had helped bring these nations on the growth path to development through more industrialization, more and more job creation for the large number of unemployed in the country and fine tune the managerial and professional skills. It has brought about a huge change in the GDP level of the country with improved standards of living.<o:p></o:p></span></span></div><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #262626; font-size: 14pt; font-weight: normal; line-height: 150%;"><span style="font-family: Times, 'Times New Roman', serif;">EME’s such as in the Indian subcontinent and countries like China, South East Asia and a few Latin American and the erstwhile Soviet bloc have especially benefited from increased interest in these countries by foreign investors. However, to be on the growth track, they need to maintain stability in their system and also transparency to keep the investor confidence high.<o:p></o:p></span></span></div><span lang="SQ" style="color: #262626; font-size: 14pt; font-weight: normal; line-height: 115%;"><span style="font-family: Times, 'Times New Roman', serif;">Lastly, with high growth rates for these emerging economies in a state of transition, it will only be truly beneficial if these improved standards of living percolate right down to the poorest of poor. We cannot afford to have too many poor and too few millionaires</span></span>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-61519755966534445852012-01-21T12:55:00.000+01:002012-01-21T12:55:01.044+01:00Great Financial Crisis? What Great Financial Crisis?<div style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><i><span style="color: #333333; font-size: 14.0pt; line-height: 150%; mso-bidi-font-weight: bold;">That seems to be the attitude in 2011. Which worries us at EconomyWatch.com, because we do not believe that the underlying problems have been solved. If anything, they have been exacerbated.</span></i><i><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><o:p></o:p></span></i></div><div style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><b><span style="color: #333333; font-size: 14.0pt; line-height: 150%;">World Economic Statistics at a Glance - 2011 Forecast</span></b><span style="color: #333333; font-size: 14.0pt; line-height: 150%;"><o:p></o:p></span></div><div style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="color: #333333; font-size: 14.0pt; line-height: 150%;">World GDP (PPP): $78.092 trillion<br />
GDP Growth Rate: 3.3%<br />
GDP Per Capita (PPP): $11,100<br />
GDP By Sector: Services 63.4%, Industry 30.8%, Agriculture 5.8%<br />
Growth In Trade Volume: 6.953%<br />
Industrial Production Growth Rate: 4.6%<br />
Population: 6.768 billion<br />
Population Growth Rate: 1.133%<br />
Urban Population: 50.5%<br />
Urbanization Rate: 1.85% (125 million people move to cities every year)<br />
The Poor (Income below $2 per day): Approx 3.25 billion (~ 50%)<br />
Millionaires: Approx 10 million (~ 0.15%)<br />
Labor Force: 3.232 billion<br />
Inflation Rate - Developed Countries: 2.5%<br />
Inflation Rate - Developing Countries: 5.6%<br />
Unemployment Rate: 8.8%<br />
Investment: 23.4% of GDP<br />
Public Debt: 58.3% of GDP<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="background-attachment: initial; background-clip: initial; background-color: #f7f7f7; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">Market Value of Publicly Traded Companies: $48.85 trillion, or 62.6% of World GDP</span></b><b><span style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></div><div class="MsoNormal" style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt;"><i><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Sources: EconomyWatch.com Economic Statistics Database, CIA World Factbook, IMF, World Bank</span></i><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt;"><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">The World Economy in 2010 was worth $74.007 trillion in GDP terms, using the Purchasing Price Parity (PPP) method of valuation. This is expected to grow to $78.092 trillion in 2011.<o:p></o:p></span></div><div class="MsoNormal" style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt;"><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">The overall global economy averaged a 3.2 per cent growth rate between 2000 and 2007, suffering a slight dip in 2001 - 2002 thanks to the Dot Com Crash, but continuing to grow throughout that period. In fact 2004 - 2007 were boom years. The Emerging Markets, led by the giants of China, India, Russia and Brazil (the BRIC countries) had been posting 7 per cent - 10 per cent growth rates for years. Property and stock market booms had brought consistent growth in North America and Europe. Investment was bringing economic development to much of the Middle East and Africa, and even Japan was recovering from its deflationary 'Lost Years'.<o:p></o:p></span></div><div class="MsoNormal" style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt;"><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Economic conditions within these countries play a major role in setting the economic atmosphere of less well-to-do nations and their economies. In many aspects, developing and less developed economies depend on the developed countries for their economic wellbeing.<o:p></o:p></span></div><div class="MsoNormal" style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt;"><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Theories were even circulating that thanks to the growth of the developing world, we might enjoy years of unfettered growth, as new markets would go through successive growth spurts and counter the effects of slowing growth elsewhere. It was suggested that Asia was 'decoupling' from the US and able to grow under its own steam thanks to its two 'Awakening Giants'.<o:p></o:p></span></div><div class="MsoNormal" style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt;"><b><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">Sadly, that turned out to be hogwash, as deregulation allowed western banks to build up unsustainable levels of debt that brought the global economy to the brink of depression.</span></b><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div><div class="MsoNormal" style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt;"><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">As the 'Sub-Prime' Crisis morphed into a fully fledged crash then global Financial Crisis, 2008 started to bomb and 2009 became the first year that the world recorded a loss in GDP since World War II. 2.031% was wiped out of the global economy - or $3.3 trillion of value.<o:p></o:p></span></div><div class="MsoNormal" style="background: #F7F7F7; line-height: 150%; margin-bottom: 17.8pt;"><span style="color: #333333; font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman";">We are now in what the IMF calls a <b>'Two Speed Recovery Process'</b>.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com1tag:blogger.com,1999:blog-7580096903645823409.post-75952469667181885532012-01-17T17:31:00.000+01:002012-01-17T17:31:49.476+01:00THE UNITED STATES OF AMERICA<span style="font-size: large;">Slowing growth amid greater uncertainty and fiscal consolidation </span><br />
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<div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Weak private consumption and fiscal policies depress growth <o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">The outlook for the US economy has worsened considerably compared to the spring forecast. Real GDP growth decelerated from 0.8% q-o-q in the fourth quarter of 2010 to a mere 0.1% and 0.3% in the first and second quarter of 2011, the weakest growth since the first half of 2009. The slowdown largely reflected weak private consumption coupled with an increasingly negative impulse from the fiscal side. Some temporary factors weighed on activity in the first half of 2011. High commodity prices combined with supply-chain disruptions relating to the Japanese tsunami disaster constrained output across the economy and deferred corporate employment and investment decisions despite buoyant profits.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Private consumption slowed sharply from a robust 0.9% q-o-q in Q4-2010, down to 0.3% and 0.5% in the first and second quarter of 2011. Households have borne the brunt of peaking oil prices and stagnation in the labour market, where improving trends from 2010 and early 2011 have stalled leaving unemployment above 9% amid the lowest activity rates since the early 1980s. Confidence and wealth were further depressed by a series of stock market declines that wiped out most of the gains from the 2010 equity rally and led consumers to further curtail spending. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Private capital formation fared better, supported by robust corporate investment in equipment, software and structures in selected industries (e.g. mining). Investment benefited from robust corporate balance sheets and the low cost of capital but has become increasingly thwarted by rising uncertainty regarding the economic outlook. The housing market remained subdued in 2011 and most indicators suggest that it has not bottomed out yet. New residential construction stabilised at a low level but the large supply of existing homes coupled with weak demand is putting downward pressure on prices. House price indices declined in the first quarter of 2011 and have remained flat since then.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Fiscal contraction vs. loose monetary policy<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">The gradual phasing out of crisis stimulus packages as well as shrinking public consumption and investment resulted in a fiscal contraction in the first half of 2011. By contrast, monetary policy remained accommodative with the Fed committing to keep policy interest rates at historically low levels (0% to ¼%) at least until mid-2013. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Furthermore, during its September meeting the Fed decided to extend the average maturity of its holdings of securities so as to put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative ('Operation Twist'). <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Labour market improvements, still tentative at the turn of 2010, have stalled. After falling to 8.8% in March 2011 the unemployment rate rebounded above 9% in April and has remained there since then. Persistently weak labour demand led to the lengthening of unemployment duration, increased exits from the labour force and depressed activity rates. High commodity prices (predominately oil and food) pushed consumer price inflation up to its pre-crisis level (3.9% y-o-y in September 2011). At roughly half the rate of headline inflation, core inflation has been accelerating as well to reach 2% in August (up by 1 pp. from January), suggesting significant pass-through of supply shocks to core prices.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Slow growth scenario<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Real GDP is expected to rebound from the exceptionally sluggish growth in the first half of 2011, but the overall outlook for the coming years has deteriorated considerably compared to the </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">spring forecast. Real GDP growth is expected todecelerate from 1.6% in 2011 to 1.5% in 2012 and 1.3% in 2013, largely reflecting the negative impact of fiscal policies combined with slack </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">private demand, weakened by domestic and global uncertainties.</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Private consumption, which accounts for almost 70% of US GDP, is predicted to remain sluggish over the forecast horizon. Weak employment prospects coupled with a contractionary fiscal environment (particularly in 2013) will generally restrain spending, as will the feeble situation in the housing market and the ongoing process of deleveraging. While households have made great progress in deleveraging in recent years (see graph below), the process is likely to continue over the forecast horizon, limiting the chances of robust credit-led spending growth.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Grim labour market outlook delays recovery<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">The labour market outlook is expected to remain challenging, reflecting high unemployment </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">combined with declining activity rates. The share of long-term unemployed (27 weeks +) in the total number of unemployed has registered historical highs (above 40% since early 2010 compared to 10% in the 1990s), pointing to new labour market and social challenges emerging in the US. These negative trends limit prospects for a major decline in the number of unemployed over the forecast horizon. The unemployment rate is expected to remain at around 9% until 2013.</span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Gross fixed capital formation is expected to regain some strength in line with rebounding corporate investment. We expect confidence to improve gradually over the forecast horizon under the assumption of a resolution to the European debt crisis and the emergence of a convincing plan formedium-term fiscal consolidation in the US. This should lead corporations to intensify investment particularly in areas neglected in the past couple of years (e.g. structures, transportation equipment).<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Private residential investment has yet to bottom out as the persistently difficult labour market </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">situation limits the scope for a rebound in the short term. At present, a flat supply of new homes meets a rising number of existing homes on sale. The resulting downward pressure on prices</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">further worsens the position of homeowners , leading to more mortgage defaults via a feedback loop. This situation is expected to ease in the course of 2012 and trigger a very subdued and gradual recovery of house prices and, subsequently, of residential investment.</span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Uncertain profile of fiscal consolidation<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Fiscal policy is set to exert an increasing drag on economic growth over the forecast horizon. On 2 August President Obama signed the Budget Control Act of 2011 (BCA) which cuts federal </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">spending over</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">the </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">next 10 years in exchange for raising the debt ceiling. The act imposes budget cuts</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">amounting to</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">at least USD</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">2.1 trillion until 2021. Out of this amount USD</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">0.9 trillion will come from agreed caps on discretionary spending while an additional USD 1.2 trillion is to be found by 23 November by the bipartisan Congressional Committee for Deficit Reduction (CCDR). If the Committee fails to reach an agreement,</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">broadbased spending cuts are to be applied automatically from 2013 of an amount equal to the difference between the agreed savings and the USD 1.2 trillion target.</span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">The BCA sets the US on a path of steady consolidation that is designed to be front-loaded in </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">2012 and 2013, with deficit reduction equivalent to 2.3% and 3% of GDP in both years. This results from the BCA-agreed spending cuts coupled with the scheduled expiration of the 2010 payroll tax cuts and unemployment benefits, the expiration of the 2001 and 2003 Bush tax cuts as well as the ongoing effect of</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;">crisis-linked stimulus and other programmes coming to an end.</span><span style="font-family: 'Times New Roman', serif; font-size: 14pt; line-height: 150%;"> </span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">However, the amount of actual fiscal tightening over the forecast horizon is likely to be lower than implied by the current law, due to a number of recent initiatives aimed at easing the major fiscal drag ahead. This forecast assumes that: (i) the least disputed tax-cuts-related part of the USD 447 bn American Jobs Act proposed by President Obama in early September will be enacted into law generating a positive fiscal impulse of around 1% of GDP; (ii) the Bush tax cuts set to expire in 2012 are likely to be partially extended, thus easing the 2013 consolidation by around 1% of GDP. The extent of fiscal restraint in 2013 is unclear, due to the unknown outcome of the Committee's negotiations at the time of publication, as well as to the number of policy options currently discussed in Congress. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><b><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">Risks tilted to the downside<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">The risks to the outlook are clearly tilted to the downside. Fiscal policy will remain a source of <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="SQ" style="font-family: "Times New Roman","serif"; font-size: 14.0pt; line-height: 150%;">uncertainty as the design of medium-term fiscal consolidation is complicated by the weak economic outlook and a political gridlock ahead of the presidential elections. Should the consolidation plan to emerge from the current debate be insufficiently ambitious or credible for financial markets, this would undermine already weak business and household confidence. Resumingstock market declines triggered by any unfavourable policy developments domestically or internationally could further harm consumer confidence and discourage spending, putting the modest growth scenario at risk.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-74350106524995242262012-01-16T17:00:00.000+01:002012-01-16T17:00:14.010+01:00Reinventing Capitalism<div class="NormalWeb7" style="margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt; text-align: justify;"></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt;">The fast moving juggernaut of globalization, and of expanding free Market capitalism ended during October 2008. And the emergency actions by Western Governments, has illustrated a need to reinvent Capitalism, because the old system did not work. What economic models are current Governments looking at?</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="margin-bottom: 0.0001pt;"><br />
</div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt;">Old ideas for a new crisis probably describes the current psyche of our Economic leaders around the World, who have searched frantically to save a system that in reality created insolvent economies in both the USA, and Europe. So what models are these pre- October 2008 Leaders looking at, and will they succeed?.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><br />
</div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt;">Keynesian Economics is the order of the day in most Countries that face bankruptcy, and political change. The old system did not work, and during these first months of economic re- adjustments, the idea of Nationalizing insolvent Corporations, and creating public works projects has become popular again. An idea that "saved' democracies in the 1930's during the great depression.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><br />
</div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt;"><b>But did Keynesian economics save Democracies in the 1930's?</b></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt;"> It helped create employment, but even in the United States, after six years of the "New Deal," there was still officially over 15% of Americans collecting welfare. Only when the Second World War started did America become prosperous again.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt;"><br />
</span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt;"> During the 1930's, Fascism and Communism were the most successful economies, but both were flawed. Fascism depended on rebuilding the military, and taking the assets of the wealthy "Non- Germans and anti-fascists." It was based on wealth redistribution, a war economy, on cheap slave labor, and trade protectionism.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 5pt; margin-left: 0in; margin-right: 0in; margin-top: 5pt;"><span style="font-family: Arial, sans-serif; font-size: 14pt;"><br />
</span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;">Communism, was based on the state owning everything, and turning an agricultural nation into an industrial nation. Although ordinary Russians did prosper, millions of Russians were punished for "political" and "economic" crimes, and were an unpaid labor force, cutting the economic costs of industrialization. Communist Russia, was in part a slave labor state, like Fascist Germany was.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;"><br />
</span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;">Current Governments actually have no real economic models to look back on, and few economists and Political Leaders have any experience in dealing with an economic crisis on this scale. Our bankers are discredited, as they lead a banking system that was based on "bubble' economics, and still remain in charge of many of our nationalized banks.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;"><br />
</span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;"> We cannot go back to the developing World of cheap labor, producing for the cash poor but credit wealthy European, because that system collapsed in October 2008. So there is a need for our Governments, and economists to create a system, not based on saving private assets, but creating wealth in a sustainable way for this Century.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;"><br />
</span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;">Perhaps the solution is to recognize this need, then work towards creating a new Society, instead of reinventing the old. A society that lives within its means, creates both sustainable employment, and wealth. Whilst the Governments, Economist, and Bankers of old, are replaced by new more able people who can find a better solution to the boom, and bust cycle of capitalism that exists today.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;"><br />
</span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;">This is feasible, but has to be done in a way that focuses on a sustainable future for everyone, and reassessing the priorities and needs of people, ensuring as much fairness, as possible, whilst rebuilding a system that is in a dire need of reinventing itself.</span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;"><br />
</span></div><div class="MsoNormal" style="line-height: 21.35pt; margin-bottom: 0.0001pt;"><i><span lang="SQ" style="font-family: Arial, sans-serif; font-size: 14pt;"> What we need now are new ideas, new economic models, and even new leaders that inspire and can guide us through these changes, and then we can ride the storm of this crisis, and truly create a more sustainable, and better World for all.</span></i><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div><div class="MsoNormal"><br />
</div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-59624627498319451922011-10-28T16:27:00.000+02:002011-10-28T16:27:22.343+02:00What is goodwill?<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><i><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Goodwill</span></i><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">: The difference between the fair value of a business as a whole and the aggregate of the fair values of the separable and identifiable assets and liabilities. This implies that it is not possible to identify goodwill separately from the business, and this is largely because it is an intangible asset.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">The definition above explains that goodwill is the value placed upon a business in excess of the sum of its individual assets; thus goodwill represents the value of the business continuing as a going concern, as compared with its assets being sold individually. However, it could be said to be more than that. All established businesses have some goodwill. Goodwill comprises business contacts, good staff relations, the right to occupy certain pieces of land, and so on. All of these have a value – the difficulty lies in placing a value on them.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><b><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Purchased and non-purchased goodwill<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">When a business first starts, it is either created by its owners or it is purchased from an existing business. In the latter case there will have been a certain amount of negotiation over the purchase price. The vendors will obviously seek to obtain the highest price possible, whereas the purchaser will seek to minimise the price. It is likely, however, that the final price will be greater than the purchaser’s valuation of the tangible assets taken over. This is accepted because the price includes the rights to the existing business’s customer base, possibly its name, its staff, and their experience and expertise, etc. This difference is the goodwill and, more precisely, is said to be <i>purchased goodwill</i>.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">However, whether the business is created as a new start-up business or is the result of the acquisition of another business, new goodwill is earned or created by the new owners over a period of time. This is known as <i>non-purchased goodwill</i>.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><b><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Accounting treatment<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">The accounting treatment of purchased goodwill is for the purchaser to place a fair value on the net tangible assets (i.e. assets-liabilities) of the business acquired and to consider the difference between the sum of these values and the total purchase price to be goodwill.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">This amount is debited to the goodwill ledger account. The purchaser will hope that the value of the goodwill will at least be maintained and that, if he were to sell the business, he would be paid for its goodwill.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">However, it is important to note, when applying the concept of prudence, that assets should not be overstated. It could be that the factors which caused goodwill to exist in the past, for example location and customer base, no longer apply and that the value of the goodwill is now less than the price paid for it.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">It is therefore necessary to estimate, on an annual basis, the value of the goodwill. If the current estimated value is less than the amount in the balance sheet, then the goodwill is said to be ‘impaired’. Impairment occurs when the value of a non-current asset is less than its carrying amount in the balance sheet. In this situation, the goodwill is reduced to its new lower value and the difference (the ‘impairment’) is charged to the income statement as an expense. It may be noted that impairment can also apply to tangible and other non-tangible noncurrent assets and will occur at any time that the carrying amount of an asset in a balance sheet is overstated.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><b><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Example <o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">X Ltd has recently acquired the assets and liabilities of A Ltd for $1,500,000. The assets and liabilities acquired were valued by X Ltd as follows:<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><span> </span><span> </span><span> </span>$<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Land and buildings <span> </span><span> </span>750_000<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Plant and equipment <span> </span>240_000<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Inventories <span> </span><span> </span><span> </span>65_000<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Receivables<span> </span><span> </span> <span> </span>38_000<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Payables <span> </span><span> </span>(41,000)<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">-------------------------<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><span> </span>1_052_000<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">The difference between the sum of the individual net assets and the purchase price is goodwill. In this example the value of goodwill is $448,000. If in the future X Ltd values the goodwill at only $400,000, then the impairment of $48,000 will be charged to the income statement and the goodwill in the balance sheet will be reduced to $400,000.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Non-purchased (or ‘internal’) goodwill is not recognised in the balance sheet. The reason for this is that it is not possible to obtain a reliable measurement of its value. In the case of purchased goodwill, the fact that someone has paid for goodwill does mean that it has a value and that this can be measured by the price paid. In the case of internal goodwill, there has been no such external transaction and there is no basis on which the internal goodwill can be valued.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com1tag:blogger.com,1999:blog-7580096903645823409.post-17700330014190913862011-10-28T16:14:00.000+02:002011-10-28T16:14:06.372+02:00What is a business organisation?<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">A business is an organisation that regularly enters into transactions that are expected to provide a reward measurable in monetary terms. It is thus obvious from everyday life that many business organisations exist; what is less obvious is that their organisational (legal) structure and therefore their accounting requirements may differ.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">There are two main reasons for the different organisational structures that exist – the <i>nature of their activities </i>and their <i>size</i>.<i><o:p></o:p></i></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><b><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">1.7.1 Profit-making organisations<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Some organisations are formed with the intent of making profits from their activities for their owners:<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(a) <i>Sole traders </i>(<i>sole proprietors</i>). These are organisations that are owned by one person. They tend to be small because they are constrained by the limited financial resources of their owner.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(b) <i>Partnerships</i>. These are organisations owned by two or more persons working in common with a view to making a profit. The greater number of owners compared with a sole trader increases the availability of finance and this is often the reason for forming such a structure.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(c) <i>Limited companies</i>. These are organisations recognised in law as ‘persons’ in their own right. Thus a company may own assets and incur liabilities in its own name. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">The accounting of these organisations must meet certain minimum obligations imposed by legislation, for example, via company law and other regulations. Some of these requirements constitute recommended accounting practice for other types of organisation. Two types of limited companies can be identified: <i>private </i>limited companies; and <i>public</i> limited companies.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Public limited companies can be further divided according to their size, and whether they are ‘listed’ on a stock exchange. These distinctions can be important when considering the accounting requirements. A common feature of private limited companies is that their owners are actively involved in running the business. In this way they are similar to sole traders and partnerships. This is rarely true of public companies, where the owners may not become involved in the day-to-day activities of the business. Listed companies may have many thousands of owners (shareholders) who are even further removed from the running of the business.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><br />
</div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><b><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">1.7.2 Non-profit-making organisations<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Other organisations are formed with the intent of providing services, without intending to be profitable in the long term:<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(a) <i>Clubs and societies</i>. These organisations exist to provide facilities and entertainments for their members. They are often sports and/or social clubs and most of their revenue is derived from the members who benefit from the club’s facilities. They may carry out some activities that are regarded as ‘trading’ activities, in which profits are made, but these are not seen as the main purpose of the organisation.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(b) <i>Charities</i>. These exist to provide services to particular groups, for example people with special needs and to protect the environment. Although they are regarded as non-profit-making, they too often carry out trading activities, such as running shops.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(c) <i>Local and central government</i>. Government departments are financed by members of society (including limited companies). Their finances are used to provide the infrastructure in which we live, and to redistribute wealth to other members of society. You will not look at the accounts of government bodies in this Learning System.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com1tag:blogger.com,1999:blog-7580096903645823409.post-33448252999413434522011-10-28T13:16:00.000+02:002011-10-28T13:16:01.306+02:00Who uses financial statements?<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;"><span class="Apple-style-span" style="color: #404040; font-family: Arial, sans-serif;"><span class="Apple-style-span" style="font-size: 19px; line-height: 28px;"></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span class="Apple-style-span" style="color: #404040; font-family: Arial, sans-serif;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Accounting information is used by many people, both as individuals and in organisations. To get a feel for the purpose of accounts it is useful to classify these users into groups, and to look at the reasons why they use accounts and what they hope to get from them.<o:p></o:p></span></span></div><span class="Apple-style-span" style="color: #404040; font-family: Arial, sans-serif;"> <div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Any classification of this sort is somewhat arbitrary, and many users fall into more than one classification. However, the following groups are commonly recognised as having particular needs for accounting information:<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(a) <i>The investor group</i>. This group includes both existing and potential owners of shares in companies. They require information concerning the performance of the company measured in terms of its profitability and the extent to which those profits are to be distributed to shareholders. They are also interested in the social/economic policies of the company so that they may decide if they wish to be associated with such an organisation.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(b) <i>The lender group</i>. This group includes both existing and potential providers of secured or unsecured, long- or short-term loan finance. They require information concerning the ability of the organisation to repay the interest on such loans as they fall due; and the longer-term growth and stability of the organisation to ensure that it is capable of repaying the loan at the agreed time. In addition, if the loan is secured, the value of the appropriate secured assets is important as a means of recovering the amount due.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(c) <i>The employee group</i>. This group includes existing, potential and past employees. They require information concerning the ability of the organisation to pay wages and pensions today. In addition, they are interested in the future of the organisation because this will affect their job security and future prospects within the organisation.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(d) <i>The analyst/adviser group</i>. This group includes a range of advisers to investors, employees and the general public. The needs of these users will be similar to those of their clients. The difference is, perhaps, that in some instances, the members of this group will be more technically qualified to understand accounting reports.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(e) <i>The business contact group</i>. This group includes customers and suppliers of the organisation. Customers will be concerned to ensure that the organisation has the ability to provide the goods/services requested and to continue to provide similar services in the future. Suppliers will wish to ensure that the organisation will be capable of paying for the goods/services supplied when payment becomes due.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(f) <i>The government</i>. This group includes taxation authorities, and other government agencies and departments. The taxation authorities will calculate the organisation’s taxation liability based upon the accounting reports it submits to them. Other departments require statistical information to measure the state of the economy.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(g) <i>The public</i>. This group includes taxpayers, consumers and other community and special interest groups. They require information concerning the policies of the organization and how those policies affect the community. The public is increasingly interested in environmental issues.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(h) <i>Internal users</i>. The management of the company require information to assist them in the performance of their duties. Three different levels of management can be identified:<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">• <i>Strategic</i>. This is the level of management found at the top of organisations. In a commercial organisation it is referred to as the board of directors. These people require information to assist them in decisions affecting the long-term future of the organisation.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">• <i>Tactical</i>. This is often referred to as middle management. These people require information to assist them in monitoring performance and making decisions to enable the organisation to achieve its short- to medium-term targets.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-justify: inter-ideograph;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">• <i>Operational</i>. This is the level of management responsible for decisions concerning the day-to-day activities of the organisation. It is common for the information provided to them to be quantified in non-monetary units, such as hours worked, number of components produced, etc.<o:p></o:p></span></div></span>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com1tag:blogger.com,1999:blog-7580096903645823409.post-74896130839083807602011-10-18T13:42:00.000+02:002011-10-18T13:42:19.187+02:00EU economic governance<div class="MsoNormal" style="background: #D3E9F4; line-height: 150%; margin-bottom: 12.95pt; text-align: justify;"><b><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">The EU and its Member States have taken a series of important decisions that will mean stronger economic and budgetary coordination for the EU as a whole and for the euro area in particular. As a result, the EU’s interdependent economies will be better placed to chart a path to growth and job creation.<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 5.65pt; margin-left: 0in; margin-right: 0in; margin-top: 12.95pt; mso-outline-level: 3; text-align: justify;"><b><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></b></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 5.65pt; margin-left: 0in; margin-right: 0in; margin-top: 12.95pt; mso-outline-level: 3; text-align: justify;"><b><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Surveillance of economic and fiscal policies<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 12.95pt; margin-left: 0in; margin-right: 0in; margin-top: 1.6pt; text-align: justify;"><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">The economic and financial crisis has revealed a number of weaknesses in the economicgovernance of the EU's economic and monetary union. The cornerstone of the EU response is the adoption by the European Parliament and the Council of six legislative proposals put forward by the Commission in September 2010. The legislative package has four main components:<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 4.05pt; margin-left: 44.1pt; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: #404040; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol; mso-themecolor: text1; mso-themetint: 191;"><span>·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><b><span style="color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Stronger preventive action through a reinforced Stability and Growth Pact (SGP) and deeper fiscal coordination</span></b><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">: Member States are required to make significant progress towards medium-term budgetary objectives (MTO) for their budgetary balances. Expenditure benchmarks will now be used alongside the structural budget balance to assess adjustments towards the MTO. A non-interest bearing deposit of 0.2% of GDP will be imposed on non-compliant euro-area countries. <o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 4.05pt; margin-left: 44.1pt; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 4.05pt; margin-left: 44.1pt; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: #404040; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol; mso-themecolor: text1; mso-themetint: 191;"><span>·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><b><span style="color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Stronger corrective action through a reinforced SGP</span></b><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">: The launch of an Excessive Deficit Procedure (EDP) can now result from government debt developments as well as from government deficit. Member States with debt in excess of 60% of GDP should reduce their debt in line with a numerical benchmark. Progressive financial sanctions kick in at an earlier stage of the EDP. A non-interest-bearing deposit of 0.2% of GDP may be requested from a euro-area country which is placed in EDP on the basis of its deficit or its debt. Failure of a euro-area country to comply with recommendations for corrective action will result in a fine.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 4.05pt; margin-left: 44.1pt; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 4.05pt; margin-left: 44.1pt; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: #404040; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol; mso-themecolor: text1; mso-themetint: 191;"><span>·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><b><span style="color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Minimum requirements for national budgetary frameworks: </span></b><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Member States should ensure that their fiscal frameworks are in line with minimum quality standards and cover all administrative levels. National fiscal planning should adopt a multi-annual perspective, so as to attain the MTO. Numerical fiscal rules should also promote compliance with the Treaty reference values for deficit and debt.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 4.05pt; margin-left: 44.1pt; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 4.05pt; margin-left: 44.1pt; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: #404040; font-family: Symbol; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Symbol; mso-themecolor: text1; mso-themetint: 191;"><span>·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><b><span style="color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Preventing and correcting macroeconomic and competitiveness imbalances</span></b><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">: Over the past decade, Member States have made economic choices which have lead to competitiveness divergences and macroeconomic imbalances within the EU. A new surveillance mechanism will aim to prevent and correct such divergences. It will rely on an alert system that uses a scoreboard of indicators and in-depth country studies, strict rules in the form of a new Excessive Imbalance Procedure (EIP) and better enforcement in the form of financial sanctions for Member States which do not follow up on recommendations.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 4.05pt; margin-left: 44.1pt; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 12.95pt; margin-left: 0in; margin-right: 0in; margin-top: 1.6pt; text-align: justify;"><span style="background: white; color: #404040; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Enforcement is strengthened by the expanded use of 'reverse qualified majority' voting. Under this voting system, a Commission recommendation or proposal to the Council is considered adopted unless a qualified majority of Member States vote against it.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-40777538523176251422011-10-04T13:52:00.000+02:002011-10-04T13:52:24.713+02:00Forensic accounting<div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><b><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Forensic accounting</span></b><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">is the specialty practice area of</span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Accountancy" title="Accountancy"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">accountancy</span></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">that describes engagements that result from actual or anticipated disputes or</span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Litigation" title="Litigation"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">litigation</span></a><span style="background: white;">. "Forensic" means "suitable for use in a court of law", and it is to that standard and potential outcome that forensic accountants generally have to work. Forensic accountants, also referred to as forensic auditors or investigative auditors, often have to give expert evidence at the eventual trial.</span><a href="http://en.wikipedia.org/wiki/Forensic_accounting#cite_note-0"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[1]</span></sup></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">All of the larger accounting firms, as well as many medium-sized and boutique firms, have specialist forensic accounting departments. Within these groups, there may be further sub-specializations: some forensic accountants may, for example, just specialize in</span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Insurance" title="Insurance"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">insurance</span></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Claim_(legal)" title="Claim (legal)"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">claims</span></a><span style="background: white;">,</span></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Personal_injury" title="Personal injury"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">personal injury</span></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">claims,</span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Fraud" title="Fraud"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">fraud</span></a><span style="background: white;">,</span></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Construction" title="Construction"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">construction</span></a><span style="background: white;">,</span><a href="http://en.wikipedia.org/wiki/Forensic_accounting#cite_note-1"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[2]</span></sup></a><span style="background: white;">or</span></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Royalties" title="Royalties"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">royalty</span></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Audit" title="Audit"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">audits</span></a><span style="background: white;">.</span><a href="http://en.wikipedia.org/wiki/Forensic_accounting#cite_note-2"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[3]</span></sup></a><span style="background: white;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Engagements relating to civil disputes may fall into several categories: calculating and quantifying losses and</span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Damages" title="Damages"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">economic damages</span></a><span style="background: white;">, whether suffered through</span><a href="http://en.wikipedia.org/wiki/Tort" title="Tort"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">tort</span></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">or</span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Breach_of_contract" title="Breach of contract"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">breach of contract</span></a><span style="background: white;">; disagreements relating to company acquisitions—perhaps</span></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Earn_out" title="Earn out"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">earn outs</span></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">or breaches of</span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Warranty" title="Warranty"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">warranties</span></a><span style="background: white;">; and</span></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Business_valuation" title="Business valuation"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">business valuation</span></a><span style="background: white;">. Forensic accountants often assist in professional</span></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Negligence" title="Negligence"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">negligence</span></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">claims where they are assessing and commenting on the work of other professionals.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Forensic accountants are also engaged in</span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Marital_and_family_law" title="Marital and family law"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">marital and family law</span></a></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">of analyzing lifestyle for spousal support purposes, determining income available for child support and equitable distribution.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Engagements relating to criminal matters typically arise in the aftermath of fraud. They frequently involve the assessment of accounting systems and accounts presentation—in essence assessing if the numbers reflect reality.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Some forensic accountants specialize in forensic analytics which is the procurement and analysis of electronic data to reconstruct, detect, or otherwise support a claim of financial fraud. The main steps in forensic analytics are (a) data collection, (b) data preparation, (c) data analysis, and (d) reporting. For example, forensic analytics may be used to review an employee's purchasing card activity to assess whether any of the purchases were diverted or divertible for personal use.</span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Forensic accountants</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><i><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Main article:<span class="apple-converted-space"> </span></span></i><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Forensic_accountant" title="Forensic accountant"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Forensic accountant</span></i></a><i><span style="background: white;"><o:p></o:p></span></i></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Forensic accountants may be involved in recovering proceeds of crime and in relation to confiscation proceedings concerning actual or assumed proceeds of crime or<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Money_laundering" title="Money laundering"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">money laundering</span></a><span style="background: white;">. In the<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/United_Kingdom" title="United Kingdom"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">United Kingdom</span></a><span style="background: white;">, relevant legislation is contained in the<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Proceeds_of_Crime_Act_2002" title="Proceeds of Crime Act 2002"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Proceeds of Crime Act 2002</span></a><span style="background: white;">. In India there is a separate breed of forensic accountants called Certified Forensic Accounting Professionals. Some forensic accountants are also<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Certified_Forensic_Accounting_Professional" title="Certified Forensic Accounting Professional"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Certified Forensic Accounting Professionals</span></a><span style="background: white;">,</span><a href="http://en.wikipedia.org/wiki/Certified_Fraud_Examiner" title="Certified Fraud Examiner"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Certified Fraud Examiners</span></a><span style="background: white;">,<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Certified_Public_Accountant" title="Certified Public Accountant"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Certified Public Accountants</span></a><span style="background: white;">,<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Chartered_Accountant" title="Chartered Accountant"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Chartered Accountants</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">or<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Association_of_Chartered_Certified_Accountants" title="Association of Chartered Certified Accountants"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">ACCAs</span></a><span style="background: white;">.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Forensic accountants utilize an understanding of<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Business_information" title="Business information"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">business information</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">and<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Financial_statements" title="Financial statements"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">financial reporting</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">systems, accounting and auditing standards and procedures,</span><a href="http://en.wikipedia.org/wiki/Evidence" title="Evidence"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">evidence</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">gathering and investigative techniques, and litigation processes and procedures to perform their work. Forensic accountants are also increasingly playing more proactive risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisers to audit committees,<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Fraud_deterrence" title="Fraud deterrence"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">fraud deterrence</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">engagements, and assisting in investment analyst research.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">"While Forensic Accountants ("FAs") usually do not provide opinions, the work performed and reports issued will often provide answers to the how, where, what, why and who. The FAs have and are continuing to evolve in terms of utilizing technology to assist in engagements to identify anomalies and inconsistencies. It is important to remember that it is not the Forensic Accountants that determine fraud, but instead the court." (David Malamed, Forensic Accountant, Toronto Ontario.)<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com1tag:blogger.com,1999:blog-7580096903645823409.post-9273886475369388912011-10-04T13:48:00.000+02:002011-10-04T13:48:11.011+02:00Hollywood accounting<div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span class="apple-style-span"><b><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Hollywood accounting</span></b></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span class="apple-style-span"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">(also known as</span></span><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span class="apple-style-span"><b><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Hollywood</span></b></span><span class="apple-converted-space"><b><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"> </span></b></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Bookkeeping" title="Bookkeeping"><b><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">bookkeeping</span></b></a><span class="apple-style-span"><span style="background: white;">)<sup><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-0"><span style="color: #404040; mso-themecolor: text1; mso-themetint: 191;">[1]</span></a></sup></span></span><span class="apple-converted-space"><span style="background: white;"> </span></span><span class="apple-style-span"><span style="background: white;">refers to the opaque accounting methods used by</span></span><span class="apple-converted-space"><span style="background: white;"> </span></span><a href="http://en.wikipedia.org/wiki/Cinema_of_the_United_States" title="Cinema of the United States"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Hollywood</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span class="apple-style-span"><span style="background: white;">to budget and record profits for film projects. Expenditures can be inflated to reduce or eliminate the</span></span><span class="apple-converted-space"><span style="background: white;"> </span></span><a href="http://en.wikipedia.org/wiki/Profit_(accounting)" title="Profit (accounting)"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">profit</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span class="apple-style-span"><span style="background: white;">of the project thereby reducing the amount which the corporation must pay in</span></span><span class="apple-converted-space"><span style="background: white;"> </span></span><a href="http://en.wikipedia.org/wiki/Royalties" title="Royalties"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">royalties</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span class="apple-style-span"><span style="background: white;">or other profit-sharing agreements based on the</span></span><span class="apple-converted-space"><span style="background: white;"> </span></span><a href="http://en.wikipedia.org/wiki/Net_profit" title="Net profit"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">net profit</span></a><span class="apple-style-span"><span style="background: white;">.<o:p></o:p></span></span></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><span class="apple-style-span"><span style="background: white;"><br />
</span></span></span></div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Creative accountants</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Hollywood accounting gets its name from its prevalence in the entertainment industry — that is, in the<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Film" title="Film"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">movie</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">studios of<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Cinema_of_the_United_States" title="Cinema of the United States"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Hollywood</span></a><span style="background: white;">. Those affected can range from the writers<sup><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-1"><span style="color: #404040; mso-themecolor: text1; mso-themetint: 191;">[2]</span></a></sup><span class="apple-converted-space"> </span>to the actors.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-2"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[3]</span></sup></a><span style="background: white;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/John_D._MacDonald" title="John D. MacDonald"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">John D. MacDonald</span></a><span style="background: white;">'s novel<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Free_Fall_in_Crimson" title="Free Fall in Crimson"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Free Fall in Crimson</span></i></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">(1981) references Hollywood accounting in its dialogue:<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">"Darling! This is the Industry! The really creative people are the accountants. A big studio got over half the profit, after setting breakeven at about three times the cost, taking twenty-five percent of income as an overhead charge, and taking thirty percent of income as a distribution charge, plus rental fees, and prime interest on what they advanced."<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><br />
</span></div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">How it works</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Hollywood accounting can take several forms. In one form, a subsidiary is formed to perform a given activity and the parent entity will extract money out of the subsidiary not in terms of profits but in the form of charges for certain "services". The specific schemes can range from the simple and obvious to the extremely complex.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Three main factors in Hollywood accounting reduce the reported profit of a movie, and all have to do with the calculation of</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Overhead_(business)" title="Overhead (business)"><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">overhead</span></a></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">:<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: #404040; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings; mso-themecolor: text1; mso-themetint: 191;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Production overhead – Studios, on average, calculate production overhead by using a figure around 15% of total production costs.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: #404040; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings; mso-themecolor: text1; mso-themetint: 191;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Distribution overhead –</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Film_distributor" title="Film distributor"><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Film distributors</span></a></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> <span style="background: white;">typically keep 30% of what they receive from movie theaters ("gross rentals").<o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: #404040; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings; mso-themecolor: text1; mso-themetint: 191;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Marketing overhead – To determine this number, studios usually choose about 10% of all advertising costs.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">All of the above means of calculating overhead are highly controversial, even within the accounting profession. Namely, these percentages are assigned without much regard to how, in reality, these estimates relate to actual overhead costs. In short, this method does not, by any rational standard, attempt to adequately trace overhead costs.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Due to Hollywood accounting, it has been estimated that only about 5% of movies officially show a</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Net_(economics)" title="Net (economics)"><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">net</span></a></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> <span style="background: white;">profit, and the "losers" include such blockbuster films as</span> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Rain_Man" title="Rain Man"><i><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Rain Man</span></i></a></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">,</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Forrest_Gump" title="Forrest Gump"><i><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Forrest Gump</span></i></a></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">,</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Who_Framed_Roger_Rabbit" title="Who Framed Roger Rabbit"><i><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Who Framed Roger Rabbit</span></i></a></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">, and</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Batman_(1989_film)" title="Batman (1989 film)"><i><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Batman</span></i></a></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">, which all took in huge amounts in box office and video sales.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Because of this, net points are sometimes referred to as "monkey points," a term attributed to</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Eddie_Murphy" title="Eddie Murphy"><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">Eddie Murphy</span></a></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">, who is said to have also stated that only a fool would accept net points in his or her contract.</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-4"><sup><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">[5]</span></sup></a><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-5"><sup><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">[6]</span></sup></a></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">All of this shows why so many big-name actors insist on "gross points" (a percentage of some definition of</span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> </span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Gross_(economics)" title="Gross (economics)"><span style="color: #404040; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;">gross</span></a></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"> <span style="background: white;">revenue) rather than net profit participation. This practice reduces the likelihood of a project showing a profit, as a production company will claim a portion of the reported box-office revenue was diverted directly to gross point participants.<o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1; mso-themetint: 191;"><span style="background: white;"><br />
</span></span></div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Examples</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Winston_Groom" title="Winston Groom"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Winston Groom</span></a><span style="background: white;">'s price for the screenplay rights to his novel<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Forrest_Gump_(novel)" title="Forrest Gump (novel)"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Forrest Gump</span></i></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">included a share of the profits; however, due to Hollywood accounting, the film's commercial success was converted into a net loss, and Groom received nothing.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-6"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[7]</span></sup></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">That being so, he has refused to sell the screenplay rights to the novel's sequel, stating that he "cannot in good conscience allow money to be wasted on a failure".<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Stan_Lee" title="Stan Lee"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Stan Lee</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">filed and won a<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Lawsuit" title="Lawsuit"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">lawsuit</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">after the producers of the movie<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Spider-Man_(film)" title="Spider-Man (film)"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Spider-Man</span></i></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">did not give him a portion of the gross revenue.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-7"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[8]</span></sup></a><span style="background: white;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">The estate of<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Jim_Garrison" title="Jim Garrison"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Jim Garrison</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">sued<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Warner_Bros." title="Warner Bros."><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Warner Bros.</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">for their share of the profits from the movie<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/JFK_(film)" title="JFK (film)"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">JFK</span></i></a><span style="background: white;">, which was based on Garrison's book<span class="apple-converted-space"> </span><i>On the Trail of the Assassins</i>.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-8"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[9]</span></sup></a><span style="background: white;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Art_Buchwald" title="Art Buchwald"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Art Buchwald</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">received a settlement after his lawsuit<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Buchwald_v._Paramount" title="Buchwald v. Paramount"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Buchwald v. Paramount</span></i></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">over Paramount's use of Hollywood accounting. The court found Paramount's actions "unconscionable", noting that it was impossible to believe that a movie (1988's<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Eddie_Murphy" title="Eddie Murphy"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Eddie Murphy</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">comedy<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Coming_to_America" title="Coming to America"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Coming to America</span></i></a><span style="background: white;">) which grossed US$350 million failed to make a profit, especially since the actual production costs were less than a tenth of that. Paramount settled for an undisclosed sum, rather than have its accounting methods closely scrutinized.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">The film<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/My_Big_Fat_Greek_Wedding" title="My Big Fat Greek Wedding"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">My Big Fat Greek Wedding</span></i></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">was considered hugely successful for an independent film, yet according to the studio, the film lost money. Accordingly, the cast (with the exception of<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Nia_Vardalos" title="Nia Vardalos"><span style="color: #404040; mso-themecolor: text1; mso-themetint: 191;">Nia Vardalos</span></a><span class="apple-converted-space"> </span>who had a separate deal) sued the studio for their part of the profits. The original producers of the film have sued<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Gold_Circle_Films" title="Gold Circle Films"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Gold Circle Films</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">due to Hollywood accounting practices because the studio has claimed the film<span class="apple-converted-space"> </span><i>lost</i><span class="apple-converted-space"> </span>$20 million.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-9"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[10]</span></sup></a><span style="background: white;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Hollywood accounting is not limited to movies. An example is the Warner Bros.<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Television_series" title="Television series"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">television series</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><a href="http://en.wikipedia.org/wiki/Babylon_5" title="Babylon 5"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Babylon 5</span></i></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">created by<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/J._Michael_Straczynski" title="J. Michael Straczynski"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">J. Michael Straczynski</span></a><span style="background: white;">. Straczynski, who wrote 90% of the episodes in addition to<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Executive_producer" title="Executive producer"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">producing</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">the show, would receive a generous cut of profits if not for Hollywood accounting.<sup>[</sup></span><a href="http://en.wikipedia.org/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><i><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">citation needed</span></sup></i></a><sup><span style="background: white;">]</span></sup><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">The series, which was profitable in each of its five seasons from 1993–1998, has garnered more than US$1 billion for Warner Bros., most recently US$500 million in<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/DVD" title="DVD"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">DVD</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">sales alone. But in the last profit statement given to Straczynski, Warner Bros. claimed the property was $80 million in debt. "Basically", says Straczynski, "by the terms of my contract, if a set on a WB movie burns down in Botswana, they can charge it against<span class="apple-converted-space"> </span><i>B5'</i>s profits."</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-10"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[11]</span></sup></a><span style="background: white;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Peter_Jackson" title="Peter Jackson"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Peter Jackson</span></a><span style="background: white;">, director of<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/The_Lord_of_the_Rings_film_trilogy" title="The Lord of the Rings film trilogy"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">The Lord of the Rings</span></i></a><span style="background: white;">, and his studio<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Wingnut_Films" title="Wingnut Films"><span style="color: #404040; mso-themecolor: text1; mso-themetint: 191;">Wingnut Films</span></a>, brought a lawsuit against<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/New_Line_Cinema" title="New Line Cinema"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">New Line Cinema</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">after "an audit... on part of the income of<span class="apple-converted-space"> </span><i>The Fellowship of the Ring</i>." Jackson stated this is regarding "certain accounting practices," which may be a reference to Hollywood accounting. In response, New Line stated that their rights to a film of<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/The_Hobbit" title="The Hobbit"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">The Hobbit</span></i></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">were time-limited, and since Jackson would not work with them again until the suit was settled, he would not be asked to direct<span class="apple-converted-space"> </span><i>The Hobbit</i>, as had been anticipated.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-11"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[12]</span></sup></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">Fifteen actors are suing New Line Cinema, claiming that they have never received their 5% of revenue from merchandise sold in relation to the movie, which contains their likeness.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-12"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[13]</span></sup></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">Similarly, the Tolkien estate has sued New Line, claiming that while their contract entitled them to 7.5% of the gross receipts, the film studio has refused to pay them any share of the $6 billion hit.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-13"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[14]</span></sup></a><span style="background: white;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">A WB receipt was leaked online, showing that the hugely successful movie<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Harry_Potter_and_the_Order_of_the_Phoenix_(film)" title="Harry Potter and the Order of the Phoenix (film)"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Harry Potter and the Order of the Phoenix</span></i></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">ended up with a $167 million loss on paper.</span><a href="http://en.wikipedia.org/wiki/Hollywood_accounting#cite_note-14"><sup><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">[15]</span></sup></a><span style="background: white;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Michael Moore is suing Bob and Harvey Weinstein for creative accounting to deprive him of his share of profits for the film<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Fahrenheit_9/11" title="Fahrenheit 9/11"><i><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Fahrenheit 9/11</span></i></a><span style="background: white;">.<span class="apple-converted-space"> </span><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><span style="background: white;"><span class="apple-converted-space"><br />
</span></span></span></div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Production accounting</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #404040; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><b><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Production accounting</span></b><span class="apple-converted-space"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"> </span></span><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">is a filmmaking term, used especially in<span class="apple-converted-space"> </span></span><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;"><a href="http://en.wikipedia.org/wiki/Cinema_of_the_United_States" title="Cinema of the United States"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">Hollywood</span></a><span style="background: white;">, referring to the<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Project_accounting" title="Project accounting"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">project accounting</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">of the cost of a film project. As with<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Construction_accounting" title="Construction accounting"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">construction accounting</span></a><span style="background: white;">, salient issues are the accurate allocation of workers' time to specific projects (usually requiring each worker to fill out a weekly<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Timesheet" title="Timesheet"><span style="background: white; color: #404040; mso-themecolor: text1; mso-themetint: 191;">timesheet</span></a><span style="background: white;">), and the correct assessment of indirect costs such as employee benefits.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #404040; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 191;">Specialized software to support production accounting has been developed.<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com1tag:blogger.com,1999:blog-7580096903645823409.post-27372603855380878482011-10-04T13:45:00.000+02:002011-10-04T13:45:46.261+02:00Creative accounting<div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><b><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Creative accounting</span></b><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"> </span></span><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">and<span class="apple-converted-space"> </span><b>earnings management</b><span class="apple-converted-space"> </span>are<span class="apple-converted-space"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Euphemism" title="Euphemism"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">euphemisms</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">referring to<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Accounting" title="Accounting"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">accounting</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">practices that may follow the letter of the rules of<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Standard_accounting_practice" title="Standard accounting practice"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">standard accounting practices</span></a><span style="background: white; color: black;">, but certainly deviate from the spirit of those rules. They are characterized by excessive complication and the use of novel ways of characterizing income, assets, or liabilities and the intent to influence readers towards the interpretations desired by the authors. The terms "innovative" or "aggressive" are also sometimes used.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">The term as generally understood refers to systematic<span class="apple-converted-space"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Fraud" title="Fraud"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">misrepresentation</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">of the true<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Income" title="Income"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">income</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">and<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Asset" title="Asset"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">assets</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">of corporations or other organizations. "</span><a href="http://en.wikipedia.org/wiki/Creativity" title="Creativity"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">Creative</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">accounting" is at the root of a number of</span><a href="http://en.wikipedia.org/wiki/Accounting_scandals" title="Accounting scandals"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">accounting scandals</span></a><span style="background: white; color: black;">, and many proposals for<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Accounting_reform" title="Accounting reform"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">accounting reform</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">- usually centering on an updated analysis of<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Capital_(economics)" title="Capital (economics)"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">capital</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">and<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Factors_of_production" title="Factors of production"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">factors of production</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">that would correctly reflect how value is added.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Newspaper and television journalists have hypothesized that the<span class="apple-converted-space"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Stock_market_downturn_of_2002" title="Stock market downturn of 2002"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">stock market downturn of 2002</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">was precipitated by reports of<span class="apple-converted-space"> </span><b>accounting irregularities</b><span class="apple-converted-space"> </span>at<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Enron" title="Enron"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">Enron</span></a><span style="background: white; color: black;">,<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/MCI_Inc." title="MCI Inc."><span style="color: #0645ad; text-decoration: none; text-underline: none;">Worldcom</span></a>, and other firms in the</span><a href="http://en.wikipedia.org/wiki/United_States" title="United States"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">United States</span></a><span style="background: white; color: black;">.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">One commonly accepted incentive for the systemic over-reporting of corporate income which came to light in 2002 was the granting of<span class="apple-converted-space"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Stock_option" title="Stock option"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">stock options</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">as part of<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Executive_compensation" title="Executive compensation"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">executive compensation</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">packages. Since stock prices reflect earning reports, stock options could be most profitably exercised when income is exaggerated, and the stock can be sold at an inflated profit.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">The most notable activist is<span class="apple-converted-space"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/w/index.php?title=Abraham_Briloff&action=edit&redlink=1" title="Abraham Briloff (page does not exist)"><span style="background: white; color: #ba0000; text-decoration: none; text-underline: none;">Abraham Briloff</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">(</span><a href="http://en.wikipedia.org/wiki/Professor_emeritus" title="Professor emeritus"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">professor emeritus</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">of<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/CUNY_Baruch" title="CUNY Baruch"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">CUNY Baruch</span></a><span style="background: white; color: black;">) who for years wrote a column for<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Barron%27s_Magazine" title="Barron's Magazine"><i><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">Barron's</span></i></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">that constantly analyzed breaches of ethics and audit professionalism among<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Certified_Public_Accountant" title="Certified Public Accountant"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">CPA</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">firms. His most famous book is called<span class="apple-converted-space"> </span><i>Unaccountable Accounting</i>. The profession, in turn, was not kind to Dr. Briloff<sup><a href="http://en.wikipedia.org/wiki/Creative_accounting#cite_note-0"><span style="color: #0645ad; text-decoration: none; text-underline: none;">[1]</span></a></sup><span class="apple-converted-space"> </span>but much of what he advocated has been forced on the industry in the wake of the<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Enron_scandal" title="Enron scandal"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">Enron scandal</span></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">(See<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Sarbanes-Oxley" title="Sarbanes-Oxley"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">Sarbanes-Oxley</span></a><span style="background: white; color: black;">).<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">According to critic<span class="apple-converted-space"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/David_Ehrenstein" title="David Ehrenstein"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">David Ehrenstein</span></a><span style="background: white; color: black;">, the term "Creative Accounting" was first used in 1968 in the film<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/The_Producers_(1968_film)" title="The Producers (1968 film)"><i><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">The Producers</span></i></a><span class="apple-converted-space"><span style="background: white; color: black;"> </span></span><span style="background: white; color: black;">by<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Mel_Brooks" title="Mel Brooks"><span style="background: white; color: #0645ad; text-decoration: none; text-underline: none;">Mel Brooks</span></a><span style="background: white; color: black;">.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><span style="background: white; color: black;"><br />
</span></span></div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: black; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Earnings management</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: black; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">"Earnings management" occurs when</span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Management" title="Management"><span style="background: white; color: #0645ad;">managers</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">use judgment in</span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Financial_reporting" title="Financial reporting"><span style="background: white; color: #0645ad;">financial reporting</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">and in structuring transactions to alter financial reports to either mislead some</span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Stakeholder_(corporate)" title="Stakeholder (corporate)"><span style="background: white; color: #0645ad;">stakeholders</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">about the underlying economic performance of a company or influence contractual outcomes that depend on reported accounting numbers.</span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Creative_accounting#cite_note-2"><sup><span style="background: white; color: #0645ad;">[3]</span></sup></a><span style="background: white; color: black;"><o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Earnings management usually involves the artificial increase (or decrease) of</span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Revenue" title="Revenue"><span style="background: white; color: #0645ad;">revenues</span></a><span style="background: white; color: black;">,</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Profit_(accounting)" title="Profit (accounting)"><span style="background: white; color: #0645ad;">profits</span></a><span style="background: white; color: black;">, or earnings per share figures through aggressive accounting tactics. Aggressive earnings management is a form of</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Fraud" title="Fraud"><span style="background: white; color: #0645ad;">fraud</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">and differs from reporting error.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Management wishing to show earnings at a certain level or following a certain pattern seek loopholes in financial reporting standards that allow them to adjust the numbers as far as is practicable to achieve their desired aim or to satisfy projections by financial analysts. These adjustments amount to fraudulent financial reporting when they fall 'outside the bounds of acceptable accounting practice'. Drivers for such behaviour include market expectations, personal realisation of a bonus, and maintenance of position within a market sector. In most cases conformance to acceptable accounting practices is a matter of personal integrity. Aggressive earnings management becomes more probable when a company is affected by a downturn in business.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Earnings management is seen as a pressing issue in current accounting practice. Part of the difficulty lies in the accepted recognition that there is no such thing as a single 'right' earnings figure and that it is possible for legitimate business practices to develop into unacceptable financial reporting.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">It is relatively easy for an auditor to detect error, but earnings management can involve sophisticated fraud that is covert. The requirement for management to assert that the accounts have been prepared properly offers no protection where those managers have already entered into conscious deceit and fraud. Auditors need to distinguish fraud from error by identifying the presence of intention.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">The main forms of earnings management are as follows:<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l1 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Unsuitable revenue recognition<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l1 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Inappropriate accruals and estimates of liabilities<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l1 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Excessive provisions and generous reserve accounting<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l1 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Intentional minor breaches of financial reporting requirements that aggregate to a material breach.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l1 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;"><br />
</span></div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: black; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">The motivations of creative accounting</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: black; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Personal incentives<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Bonus-related pay<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Benefits from shares and share options<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Job security<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Personal satisfaction<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="background: white; color: black; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%;">Cover-up Fraud<o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-21762353325364086962011-10-04T13:42:00.000+02:002011-10-04T13:42:42.378+02:00List of corporate scandals<div class="MsoNormal" style="line-height: 150%; text-align: justify;"><span class="apple-style-span"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">A</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span class="apple-style-span"><b><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">corporate scandal</span></b></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">is a</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Scandal" title="Scandal"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">scandal</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">involving allegations of unethical behavior by people acting within or on behalf of a corporation. A corporate scandal sometimes involves</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Accounting" title="Accounting"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">accounting</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Fraud" title="Fraud"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">fraud</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">of some sort. A wave of such scandals swept many</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/United_States" title="United States"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">United States</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span class="apple-style-span"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">companies in 2002 (see list at</span></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Accounting_scandals" title="Accounting scandals"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">accounting scandals</span></a></span><span class="apple-style-span"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">).<o:p></o:p></span></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: black; font-family: Calibri, sans-serif; font-size: 14pt; line-height: 150%;">List of corporate scandals</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: black; font-family: Calibri, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/2006_HP_Spying_Scandal" title="2006 HP Spying Scandal"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">2006 HP Spying Scandal</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-0"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[1]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/2008_Siemens_alleged_scandal_in_Greece" title="2008 Siemens alleged scandal in Greece"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">2008 Siemens Scandal</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, involving cases of bribery on behalf of<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Siemens" title="Siemens"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Siemens</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">towards the<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Greek_Government" title="Greek Government"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Greek Government</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/American_Airlines#MD-80_maintenance_controversies_and_consequences" title="American Airlines"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">American Airlines</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, deferred maintenance of aircraft<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Adelphia_Communications_Corporation#Adelphia_officers_trial" title="Adelphia Communications Corporation"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Adelphia</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">officers trial and prison sentence</span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-hist-1"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[2]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/AOL_Time_Warner" title="AOL Time Warner"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">AOL Time Warner</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Arthur Andersen</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/BAE_Systems" title="BAE Systems"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">BAE Systems</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">bribery scandal related to the<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Al_Yamamah" title="Al Yamamah"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Al Yamamah</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">contracts with Saudi Arabia.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_International" title="Bank of Credit and Commerce International"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Bank of Credit and Commerce International</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">scandal<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Barings_Bank" title="Barings Bank"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Barings Bank</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, derivatives trading scandal<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Bayer" title="Bayer"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Bayer</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, links to<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Josef_Mengele" title="Josef Mengele"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Josef Mengele</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">'s<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Auschwitz" title="Auschwitz"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Auschwitz</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">human experiments, HIV-tainted blood products, anti-Semitism, racism<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Bre-X" title="Bre-X"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Bre-X</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">gold mining and stock scandal<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Bristol-Myers_Squibb#Scandals_and_allegations" title="Bristol-Myers Squibb"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Bristol-Myers Squibb</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">accounting scandal</span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Carrian_Group" title="Carrian Group"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Carrian Group</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Clearstream" title="Clearstream"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Clearstream</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, which has been qualified as "the greatest financial scandal in Luxembourg" (Clearstream is a clearing house, i.e. sort of a "bank of banks", used to centralize credit & debit between banks and other financial organizations). As of 2006, it hasn't been resolved yet.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Chiquita_Brands_International" title="Chiquita Brands International"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Chiquita Brands International</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">Financing terrorist organizations<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/CMS_Energy" title="CMS Energy"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">CMS Energy</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Compass_Group" title="Compass Group"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Compass Group</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, bribed the<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/United_Nations" title="United Nations"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">United Nations</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">in order to win business.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Corrib_gas_controversy" title="Corrib gas controversy"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Corrib gas controversy</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">Kilcommon, Erris, Co. Mayo, Ireland.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Deutsche_Bank" title="Deutsche Bank"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Deutsche Bank</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, spying scandal<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Duke_Energy" title="Duke Energy"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Duke Energy</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Dynegy" title="Dynegy"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Dynegy</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/El_Paso_Corp." title="El Paso Corp."><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">El Paso Corp.</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Enron_scandal" title="Enron scandal"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Enron accounting fraud</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, involving<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Arthur Andersen</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-hist-1"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[2]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Exxon" title="Exxon"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Exxon</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">overreporting of<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Petroleum" title="Petroleum"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">oil</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">reserves<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Fannie_Mae" title="Fannie Mae"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Fannie Mae</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">underreporting of<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Profit_(accounting)" title="Profit (accounting)"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">profit</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Firestone_Tire_and_Rubber_Company" title="Firestone Tire and Rubber Company"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Firestone Tire and Rubber Company</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">for use of<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Child_labor" title="Child labor"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">child labor</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/w/index.php?title=FlowTex&action=edit&redlink=1" title="FlowTex (page does not exist)"><span style="background: white; color: #ba0000; mso-bidi-font-family: Arial;">FlowTex</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, the largest corporate scandal in German history<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Ford_Pinto" title="Ford Pinto"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Ford Pinto</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">scandal<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Global_Crossing" title="Global Crossing"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Global Crossing</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Guinness_affair" title="Guinness affair"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Guinness affair</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Hafskip" title="Hafskip"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Hafskip</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">'s collapse<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Halliburton" title="Halliburton"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Halliburton</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">overcharging government contracts<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Harken_Energy_Scandal" title="Harken Energy Scandal"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Harken Energy Scandal</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/HealthSouth" title="HealthSouth"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">HealthSouth</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">reporting exaggerated earnings<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Homestore.com" title="Homestore.com"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Homestore.com</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/IG_Farben" title="IG Farben"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">IG Farben</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, participation in the<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Holocaust" title="Holocaust"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Holocaust</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Kerr-McGee" title="Kerr-McGee"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Kerr-McGee</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, the<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Karen_Silkwood" title="Karen Silkwood"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Karen Silkwood</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">case<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Kinney_National_Company" title="Kinney National Company"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Kinney National Company</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">financial scandal<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Kmart" title="Kmart"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Kmart</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Krupp" title="Krupp"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Krupp</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, participation in arming<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Nazi_Germany" title="Nazi Germany"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Nazi Germany</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">and in the<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Holocaust" title="Holocaust"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Holocaust</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Lernout_%26_Hauspie" title="Lernout & Hauspie"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Lernout & Hauspie</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">accounting fraud<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Lockheed_Corporation" title="Lockheed Corporation"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Lockheed</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Lockheed_bribery_scandals" title="Lockheed bribery scandals"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">bribery scandal</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">in Germany, Japan, and Netherlands<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Livedoor" title="Livedoor"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Livedoorscandal</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Long-Term_Capital_Management" title="Long-Term Capital Management"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Long-Term Capital Management</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">- LTCM<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Merck_%26_Co.#Medicaid_overbilling" title="Merck & Co."><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Merck</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Medicaid_fraud" title="Medicaid fraud"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Medicaid fraud</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">investigation</span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/MG_Rover_Group" title="MG Rover Group"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">MG Rover Group</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">accounts and pensions scandal<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Mirant" title="Mirant"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Mirant</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Morrison-Knudsen" title="Morrison-Knudsen"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Morrison-Knudsen</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">scandal. Led to<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/William_Agee" title="William Agee"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">William Agee</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">'s ouster<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/w/index.php?title=Nicor_Energy&action=edit&redlink=1" title="Nicor Energy (page does not exist)"><span style="background: white; color: #ba0000; mso-bidi-font-family: Arial;">Nicor Energy</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Nortel" title="Nortel"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Nortel</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">executives overstate post-dot-com recovery earnings in order to earn bonuses</span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-hist-1"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[2]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/One.Tel" title="One.Tel"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">One.Tel</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">collapse<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Options_backdating" title="Options backdating"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Options backdating</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">involving over 100 companies<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Parmalat" title="Parmalat"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Parmalat</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">accounting scandal & mutual fund fraud<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Peregrine_Systems" title="Peregrine Systems"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Peregrine Systems</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">corporate executives convicted of accounting fraud<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Phar-Mor" title="Phar-Mor"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Phar-Mor</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">company lied to shareholders. CEO eventually sentenced to prison for fraud and company eventually became bankrupt.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Polly_Peck" title="Polly Peck"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Polly Peckscandal</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Qwest_Communications" title="Qwest Communications"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Qwest Communications</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/RadioShack" title="RadioShack"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">RadioShack</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">CEO<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/David_Edmondson" title="David Edmondson"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">David Edmondson</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">lied about attaining a B.A. degree from Pacific Coast Baptist College in<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/California" title="California"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">California</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Refco" title="Refco"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Refco</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, Inc. commodities & futures scandal involving hidden debts involving underwritting firms<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Credit_Suisse_First_Boston" title="Credit Suisse First Boston"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Credit Suisse First Boston</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">,<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Goldman_Sachs" title="Goldman Sachs"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Goldman Sachs</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">,<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Bank_of_America_Corp." title="Bank of America Corp."><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Bank of America Corp.</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l2 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Reliant_Energy" title="Reliant Energy"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Reliant Energy</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Rite_Aid" title="Rite Aid"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Rite Aid</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">accounting fraud<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Royal_Dutch_Shell" title="Royal Dutch Shell"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Royal Dutch Shell</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">overstated its<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Oil_reserves" title="Oil reserves"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">oil reserves</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">twice, it downgraded 3,900,000,000 barrels (620,000,000 m<sup>3</sup>), or about 20 percent of its total holdings.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Salad_oil_scandal" title="Salad oil scandal"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Salad oil scandal</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, where millions in loans were obtained on largely nonexistent inventories of salad oil<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Soci%C3%A9t%C3%A9_G%C3%A9n%C3%A9rale" title="Société Générale"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Société Générale</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, derivatives trading scandal causing multi-billion euro losses.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Southwest_Airlines" title="Southwest Airlines"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Southwest Airlines</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, violations of safety regulations.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Tyco_International" title="Tyco International"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Tyco International</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, executive theft and prison sentence</span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Union_Carbide" title="Union Carbide"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Union Carbide</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, the<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Bhopal_disaster" title="Bhopal disaster"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Bhopal disaster</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/ValuJet_Airlines" title="ValuJet Airlines"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">ValuJet Airlines</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, loading live oxygen generators into cargo hold of passenger jet causing fatal crash<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/WorldCom" title="WorldCom"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">WorldCom</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">/ MCI accounting scandals</span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-hist-1"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[2]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Xerox#Alleged_accounting_irregularities" title="Xerox"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Xerox</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-Forbes-3"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[4]</span></sup></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">alleged accounting irregularities involving auditor<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/KPMG" title="KPMG"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">KPMG</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, causing restatement of financial results for the years 1997 through 2000 and fines for both companies.</span><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-hist-1"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[2]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/David_Wittig" title="David Wittig"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">David Wittig</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">"looting" scandals<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Northern_Rock#Subprime_mortgage_crisis_and_nationalisation" title="Northern Rock"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Northern Rock</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">bank - subprime mortgage crisis and nationalisation, United Kingdom<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Satyam_Computers#Controversies" title="Satyam Computers"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Satyam Computers</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, India<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/S-Chips_Scandals" title="S-Chips Scandals"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">S-Chips Scandals</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">, Singapore<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l0 level1 lfo2; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Sony" title="Sony"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Sony</span></a></span><span class="apple-converted-space"><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"> </span></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">including rootkits on audio cds; then providing a security hole as solution.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; text-align: justify;"><br />
</div><h3 style="line-height: 150%; margin-bottom: .05in; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span class="mw-headline"><span style="background: white; color: black; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: minor-latin;">Mutual funds</span></span><span style="background: white; color: black; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></h3><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l1 level1 lfo3; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/w/index.php?title=Epicurum_fund&action=edit&redlink=1" title="Epicurum fund (page does not exist)"><span style="background: white; color: #ba0000; mso-bidi-font-family: Arial;">Epicurum fund</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">/<a href="http://en.wikipedia.org/wiki/Parmalat" title="Parmalat"><span style="color: #0645ad;">Parmalat</span></a><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l1 level1 lfo3; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Mutual-fund_scandal_(2003)" title="Mutual-fund scandal (2003)"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Mutual-fund scandal (2003)</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><h3 style="line-height: 150%; margin-bottom: .05in; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span class="mw-headline"><span style="background: white; color: black; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: minor-latin;">Insurance</span></span><span style="background: white; color: black; font-family: "Calibri","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></h3><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l3 level1 lfo4; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/American_International_Group" title="American International Group"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">AIG</span></a><a href="http://en.wikipedia.org/wiki/Corporate_scandal#cite_note-MBCF-2"><sup><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">[3]</span></sup></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 150%; margin-bottom: 1.2pt; margin-left: 19.2pt; mso-list: l3 level1 lfo4; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Wingdings; font-size: 10.0pt; line-height: 150%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 14.0pt; mso-fareast-font-family: Wingdings;"><span>§<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-size: 14.0pt; line-height: 150%;"><a href="http://en.wikipedia.org/wiki/Marsh_%26_Mclennan" title="Marsh & Mclennan"><span style="background: white; color: #0645ad; mso-bidi-font-family: Arial;">Marsh & Mclennan</span></a></span><span style="background: white; color: black; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0tag:blogger.com,1999:blog-7580096903645823409.post-37889304905435678572011-10-03T16:35:00.000+02:002011-10-03T16:35:24.301+02:00Accounting scandals<div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><b><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">Accounting scandals</span></b><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">, or<span class="apple-converted-space"> </span><b>corporate accounting scandals</b>, are<span class="apple-converted-space"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Political_scandals" title="Political scandals"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">political</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">and<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Corporate_abuse" title="Corporate abuse"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">business scandals</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">which arise with the disclosure of misdeeds by trusted<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Executive_(management)" title="Executive (management)"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">executives</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">of large public<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Corporation" title="Corporation"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">corporations</span></a><span style="background: white;">. Such misdeeds typically involve complex methods for misusing or misdirecting funds, overstating<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Revenues" title="Revenues"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">revenues</span></a><span style="background: white;">, understating expenses, overstating the value of corporate assets or underreporting the existence of</span><a href="http://en.wikipedia.org/wiki/Liabilities" title="Liabilities"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">liabilities</span></a><span style="background: white;">, sometimes with the cooperation of officials in other corporations or affiliates.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">In public companies, this type of "</span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Creative_accounting" title="Creative accounting"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">creative accounting</span></a><span style="background: white;">" can amount to<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Fraud" title="Fraud"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">fraud</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">and investigations are typically launched by<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Government" title="Government"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">government</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><a href="http://en.wikipedia.org/wiki/Regulation" title="Regulation"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">oversight</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">agencies, such as the<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">Securities and Exchange Commission</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">(SEC) in the United States.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">Scandals are often only the '</span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wiktionary.org/wiki/tip_of_the_iceberg" title="wikt:tip of the iceberg"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">tip of the iceberg</span></a><span style="background: white;">'. They represent the visible catastrophic failures. Note that much abuse can be completely legal or quasi legal.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">For example, in the domain of<span class="apple-converted-space"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Privatization" title="Privatization"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">privatization</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">and<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Takeovers" title="Takeovers"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">takeovers</span></a><span style="background: white;"> :<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">It is fairly easy for a top executive to<span class="apple-converted-space"> </span><b>reduce</b><span class="apple-converted-space"> </span>the price of his/her company's stock - due to<span class="apple-converted-space"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Information_asymmetry" title="Information asymmetry"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">information asymmetry</span></a><span style="background: white;">. The executive can accelerate accounting of expected expenses, delay accounting of expected revenue, engage in<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Off_balance_sheet" title="Off balance sheet"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">off balance sheet</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">transactions to make the company's profitability appear temporarily poorer, or simply promote and report severely conservative (eg. pessimistic) estimates of future earnings. Such seemingly adverse earnings news will be likely to (at least temporarily) reduce share price. (This is again due to<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Information_asymmetries" title="Information asymmetries"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">information asymmetries</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">since it is more common for top executives to do everything they can to<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Window_dress" title="Window dress"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">window dress</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">their company's earnings forecasts). There are typically very few legal risks to being 'too conservative' in one's accounting and earnings estimates.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">A reduced share price makes a company an easier<span class="apple-converted-space"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Takeover" title="Takeover"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">takeover</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">target. When the company gets bought out (or taken private) - at a dramatically lower price - the takeover artist gains a windfall from the former top executive's actions to surreptitiously reduce share price. This can represent tens of billions of dollars (questionably) transferred from previous shareholders to the takeover artist. The former top executive is then rewarded with a<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Golden_handshake" title="Golden handshake"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">golden handshake</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">for presiding over the<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Firesale" title="Firesale"><span style="color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">firesale</span></a><span class="apple-converted-space"> </span>that can sometimes be in the hundreds of millions of dollars for one or two years of work. (This is nevertheless an excellent bargain for the takeover artist, who will tend to benefit from developing a<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Reputation" title="Reputation"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">reputation</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">of being very generous to parting top executives).<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">Similar issues occur when a publicly held asset or<span class="apple-converted-space"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Non-profit_organization" title="Non-profit organization"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">non-profit organization</span></a><span class="apple-converted-space"><span style="background: white;"> </span></span><span style="background: white;">undergoes<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Privatization" title="Privatization"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">privatization</span></a><span style="background: white;">. Top executives often reap tremendous monetary benefits when a government owned or non-profit entity is sold to private hands. Just as in the example above, they can facilitate this process by making the entity appear to be in financial crisis - this reduces the sale price (to the profit of the purchaser), and makes non-profits and governments more likely to sell. It can also contribute to a public perception that private entities are more efficiently run reinforcing the political will to sell off public assets. Again, due to<span class="apple-converted-space"> </span></span><a href="http://en.wikipedia.org/wiki/Asymmetric_information" title="Asymmetric information"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166; text-decoration: none; text-underline: none;">asymmetric information</span></a><span style="background: white;">, policy makers and the general public see a government owned firm that was a financial 'disaster' - miraculously turned around by the private sector (and typically resold) within a few years.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><br />
</div><div style="border-bottom: solid #AAAAAA 1.0pt; border: none; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-element: para-border-div; padding: 0in 0in 2.0pt 0in;"> <h2 style="border: none; line-height: 150%; margin-bottom: .1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-border-bottom-alt: solid #AAAAAA .75pt; mso-padding-alt: 0in 0in 2.0pt 0in; padding: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;">Notable outcomes</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 150%;"><o:p></o:p></span></h2></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">The</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Enron_scandal" title="Enron scandal"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Enron scandal</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">turned in the indictment and criminal conviction of one of the</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Big_Five_auditor" title="Big Five auditor"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Big Five auditor</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Arthur Andersen</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">on June 15, 2002. Although the conviction was overturned on May 31, 2005 by the</span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Supreme_Court_of_the_United_States" title="Supreme Court of the United States"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Supreme Court of the United States</span></a><span style="background: white;">, the firm ceased performing audits and is currently unwinding its business operations.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">On July 9, 2002</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/George_W._Bush" title="George W. Bush"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">George W. Bush</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">gave a speech about recent accounting scandals that had been uncovered. In spite of its stern tone, the speech did not focus on establishing new policy, but instead focused on actually enforcing current laws, which include holding</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/CEO" title="CEO"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">CEOs</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">and directors personally responsible for accountancy fraud.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">In July, 2002,</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/WorldCom" title="WorldCom"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">WorldCom</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">filed for</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Bankruptcy" title="Bankruptcy"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">bankruptcy</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">protection, in what was considered the largest corporate</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Insolvency" title="Insolvency"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">insolvency</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">ever at the time.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">These scandals reignited the debate over the relative merits of</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/US_GAAP" title="US GAAP"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">US GAAP</span></a><span style="background: white;">, which takes a "rules-based" approach to accounting, versus</span></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/International_Accounting_Standards" title="International Accounting Standards"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">International Accounting Standards</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">and</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/UK_GAAP" title="UK GAAP"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">UK GAAP</span></a><span style="background: white;">, which takes a "principles-based" approach. The</span></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Financial_Accounting_Standards_Board" title="Financial Accounting Standards Board"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Financial Accounting Standards Board</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">announced that it intends to introduce more principles-based standards. More radical means of</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Accounting_reform" title="Accounting reform"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">accounting reform</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">have been proposed, but so far have very little support. The debate itself, however, overlooks the difficulties of classifying any system of knowledge, including accounting, as rules-based or principles-based.This also led to the establishment of Sarbanes-Oxley.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">On a lighter note, the</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/List_of_Ig_Nobel_Prize_winners" title="List of Ig Nobel Prize winners"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">2002</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Ig_Nobel_Prize" title="Ig Nobel Prize"><span style="color: #595959; mso-themecolor: text1; mso-themetint: 166;">Ig Nobel Prize</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">in Economics went to the CEOs of those companies involved in the corporate accounting scandals of that year for "adapting the mathematical concept of</span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Imaginary_number" title="Imaginary number"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">imaginary numbers</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">for use in the business world".<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">In 2003,</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Nortel" title="Nortel"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Nortel</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">made a big contribution to this list of scandals by incorrectly reporting a one cent per share earnings directly after their massive</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Layoff" title="Layoff"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">layoff</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">period. They used this money to pay the top 43 managers of the company. The</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">SEC</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">and the</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Ontario" title="Ontario"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Ontario</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">securities commission eventually settled civil action with Nortel. However, a separate civil action will be taken up against top Nortel executives including Dunn, Beatty, Gollogly, Pahapill and Hamilton. These proceedings have been postponed pending criminal proceedings in</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Canada" title="Canada"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Canada</span></a><span style="background: white;">.<o:p></o:p></span></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">In 2005, after a scandal on insurance and mutual funds the year before,</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/American_International_Group" title="American International Group"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">AIG</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">was investigated for accounting fraud. The company already lost over 45 billion US dollars worth of market capitalisation because of the scandal. Investigations also discovered over a billion US dollars worth of errors in accounting transactions. The New York Attorney General's investigation led to a $1.6 billion fine for AIG and criminal charges for some of its executives.</span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-42"><sup><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">[43]</span></sup></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">CEO</span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><a href="http://en.wikipedia.org/wiki/Maurice_R._Greenberg" title="Maurice R. Greenberg"><span style="background: white; color: #595959; mso-themecolor: text1; mso-themetint: 166;">Maurice R. "Hank" Greenberg</span></a></span><span class="apple-converted-space"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; mso-themecolor: text1; mso-themetint: 166;"> </span></span><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;">was forced to step down and is still fighting civil charges being pursued by New York state.<o:p></o:p></span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><br />
</span></div><div style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 4.8pt; text-align: justify;"><span style="background: white; color: #595959; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 150%; mso-themecolor: text1; mso-themetint: 166;"><span class="Apple-style-span" style="color: black; font-family: 'Times New Roman'; font-size: small; line-height: normal;"></span></span></div><div style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-color: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; padding-bottom: 2pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;"><h2 style="border-bottom-style: none; border-color: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial; line-height: 36px; margin-bottom: 0.1in; margin-left: 0in; margin-right: 0in; margin-top: 0in; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in; text-align: justify;"><span class="mw-headline"><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Notable accounting scandals</span></span><span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><o:p></o:p></span></h2></div><table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="background-attachment: initial; background-clip: initial; background-color: #f9f9f9; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-style: none; border-collapse: collapse; border-color: initial; border-left-style: none; border-right-style: none; border-top-style: none; border-width: initial;"><tbody>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #f2f2f2; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: rgb(170, 170, 170); border-top-style: solid; border-top-width: 1pt; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Company</span></b><a href="http://en.wikipedia.org/wiki/Accounting_scandals"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px; text-decoration: none;"><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><v:stroke joinstyle="miter"><v:formulas><v:f eqn="if lineDrawn pixelLineWidth 0"><v:f eqn="sum @0 1 0"><v:f eqn="sum 0 0 @1"><v:f eqn="prod @2 1 2"><v:f eqn="prod @3 21600 pixelWidth"><v:f eqn="prod @3 21600 pixelHeight"><v:f eqn="sum @0 0 1"><v:f eqn="prod @6 1 2"><v:f eqn="prod @7 21600 pixelWidth"><v:f eqn="sum @8 21600 0"><v:f eqn="prod @7 21600 pixelHeight"><v:f eqn="sum @10 21600 0"></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:formulas><v:path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"><o:lock aspectratio="t" v:ext="edit"></o:lock></v:path></v:stroke></v:shapetype><v:shape alt="↓" href="http://en.wikipedia.org/wiki/Accounting_scandals" id="Picture_x0020_1" o:button="t" o:spid="_x0000_i1029" style="height: 10.5pt; visibility: visible; width: 9pt;" type="#_x0000_t75"><v:fill o:detectmouseclick="t"><v:imagedata o:title="↓" src="file:///C:\Users\ADMINI~1.PC-\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif"></v:imagedata></v:fill></v:shape></span></b></a><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><o:p></o:p></span></b></div></td><td style="background-attachment: initial; background-clip: initial; background-color: #f2f2f2; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: rgb(170, 170, 170); border-top-style: solid; border-top-width: 1pt; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Year</span></b><a href="http://en.wikipedia.org/wiki/Accounting_scandals"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px; text-decoration: none;"><v:shape alt="↓" href="http://en.wikipedia.org/wiki/Accounting_scandals" id="Picture_x0020_2" o:button="t" o:spid="_x0000_i1028" style="height: 10.5pt; visibility: visible; width: 9pt;" type="#_x0000_t75"><v:fill o:detectmouseclick="t"><v:imagedata o:title="↓" src="file:///C:\Users\ADMINI~1.PC-\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif"></v:imagedata></v:fill></v:shape></span></b></a><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><o:p></o:p></span></b></div></td><td style="background-attachment: initial; background-clip: initial; background-color: #f2f2f2; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: rgb(170, 170, 170); border-top-style: solid; border-top-width: 1pt; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Audit Firm</span></b><a href="http://en.wikipedia.org/wiki/Accounting_scandals"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px; text-decoration: none;"><v:shape alt="↓" href="http://en.wikipedia.org/wiki/Accounting_scandals" id="Picture_x0020_3" o:button="t" o:spid="_x0000_i1027" style="height: 10.5pt; visibility: visible; width: 9pt;" type="#_x0000_t75"><v:fill o:detectmouseclick="t"><v:imagedata o:title="↓" src="file:///C:\Users\ADMINI~1.PC-\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif"></v:imagedata></v:fill></v:shape></span></b></a><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><o:p></o:p></span></b></div></td><td style="background-attachment: initial; background-clip: initial; background-color: #f2f2f2; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: rgb(170, 170, 170); border-top-style: solid; border-top-width: 1pt; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Country</span></b><a href="http://en.wikipedia.org/wiki/Accounting_scandals"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px; text-decoration: none;"><v:shape alt="↓" href="http://en.wikipedia.org/wiki/Accounting_scandals" id="Picture_x0020_4" o:button="t" o:spid="_x0000_i1026" style="height: 10.5pt; visibility: visible; width: 9pt;" type="#_x0000_t75"><v:fill o:detectmouseclick="t"><v:imagedata o:title="↓" src="file:///C:\Users\ADMINI~1.PC-\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif"></v:imagedata></v:fill></v:shape></span></b></a><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><o:p></o:p></span></b></div></td><td style="background-attachment: initial; background-clip: initial; background-color: #f2f2f2; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: rgb(170, 170, 170); border-top-style: solid; border-top-width: 1pt; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Notes</span></b><a href="http://en.wikipedia.org/wiki/Accounting_scandals"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px; text-decoration: none;"><v:shape alt="↓" href="http://en.wikipedia.org/wiki/Accounting_scandals" id="Picture_x0020_5" o:button="t" o:spid="_x0000_i1025" style="height: 10.5pt; visibility: visible; width: 9pt;" type="#_x0000_t75"><v:fill o:detectmouseclick="t"><v:imagedata o:title="↓" src="file:///C:\Users\ADMINI~1.PC-\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif"></v:imagedata></v:fill></v:shape></span></b></a><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><o:p></o:p></span></b></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Nugan_Hand_Bank" title="Nugan Hand Bank"><b><span style="color: #595959; text-decoration: none;">Nugan Hand Bank</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1980<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-0"><sup><span style="color: #595959; text-decoration: none;">[1]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Australia<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/ZZZZ_Best" title="ZZZZ Best"><b><span style="color: #595959; text-decoration: none;">ZZZZ Best</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1986<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-1"><sup><span style="color: #595959; text-decoration: none;">[2]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ponzi_scheme" title="Ponzi scheme"><span style="color: #595959; text-decoration: none;">Ponzi scheme</span></a><span class="apple-converted-space"> </span>run by<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Barry_Minkow" title="Barry Minkow"><span style="color: #595959; text-decoration: none;">Barry Minkow</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><b><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Barlow Clowes<o:p></o:p></span></b></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1988<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-2"><sup><span style="color: #595959; text-decoration: none;">[3]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United Kingdom<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Gilts management service. £110 million missing<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/MiniScribe" title="MiniScribe"><b><span style="color: #595959; text-decoration: none;">MiniScribe</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1989<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-3"><sup><span style="color: #595959; text-decoration: none;">[4]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Polly_Peck" title="Polly Peck"><b><span style="color: #595959; text-decoration: none;">Polly Peck</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1990<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-4"><sup><span style="color: #595959; text-decoration: none;">[5]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United Kingdom<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_International" title="Bank of Credit and Commerce International"><b><span style="color: #595959; text-decoration: none;">Bank of Credit and Commerce International</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1991<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-5"><sup><span style="color: #595959; text-decoration: none;">[6]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United Kingdom<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Phar-Mor" title="Phar-Mor"><b><span style="color: #595959; text-decoration: none;">Phar-Mor</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1992<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-6"><sup><span style="color: #595959; text-decoration: none;">[7]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Informix" title="Informix"><b><span style="color: #595959; text-decoration: none;">Informix</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1996<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-7"><sup><span style="color: #595959; text-decoration: none;">[8]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ernst_%26_Young" title="Ernst & Young"><span style="color: #595959; text-decoration: none;">Ernst & Young</span></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-8"><sup><span style="color: #595959; text-decoration: none;">[9]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Sybase" title="Sybase"><b><span style="color: #595959; text-decoration: none;">Sybase</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1997<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-9"><sup><span style="color: #595959; text-decoration: none;">[10]</span></sup></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-10"><sup><span style="color: #595959; text-decoration: none;">[11]</span></sup></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-11"><sup><span style="color: #595959; text-decoration: none;">[12]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ernst_%26_Young" title="Ernst & Young"><span style="color: #595959; text-decoration: none;">Ernst & Young</span></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-12"><sup><span style="color: #595959; text-decoration: none;">[13]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Cendant" title="Cendant"><b><span style="color: #595959; text-decoration: none;">Cendant</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1998<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-13"><sup><span style="color: #595959; text-decoration: none;">[14]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ernst_%26_Young" title="Ernst & Young"><span style="color: #595959; text-decoration: none;">Ernst & Young</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Waste_Management,_Inc." title="Waste Management, Inc."><b><span style="color: #595959; text-decoration: none;">Waste Management, Inc.</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">1999<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-14"><sup><span style="color: #595959; text-decoration: none;">[15]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="color: #595959; text-decoration: none;">Arthur Andersen</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Financial mistatements<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/MicroStrategy" title="MicroStrategy"><b><span style="color: #595959; text-decoration: none;">MicroStrategy</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2000<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-15"><sup><span style="color: #595959; text-decoration: none;">[16]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/PricewaterhouseCoopers" title="PricewaterhouseCoopers"><span style="color: #595959; text-decoration: none;">PricewaterhouseCoopers</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Michael_Saylor" title="Michael Saylor"><span style="color: #595959; text-decoration: none;">Michael Saylor</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Unify_Corporation" title="Unify Corporation"><b><span style="color: #595959; text-decoration: none;">Unify Corporation</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2000<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-16"><sup><span style="color: #595959; text-decoration: none;">[17]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/CA,_Inc." title="CA, Inc."><b><span style="color: #595959; text-decoration: none;">Computer Associates</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2000<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-17"><sup><span style="color: #595959; text-decoration: none;">[18]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/KPMG" title="KPMG"><span style="color: #595959; text-decoration: none;">KPMG</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Sanjay_Kumar" title="Sanjay Kumar"><span style="color: #595959; text-decoration: none;">Sanjay Kumar</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Lernout_%26_Hauspie" title="Lernout & Hauspie"><b><span style="color: #595959; text-decoration: none;">Lernout & Hauspie</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2000<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/KPMG" title="KPMG"><span style="color: #595959; text-decoration: none;">KPMG</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Belgium<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Fictitious transactions in Korea and improper accounting methodologies elsewhere<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Xerox" title="Xerox"><b><span style="color: #595959; text-decoration: none;">Xerox</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2000<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/KPMG" title="KPMG"><span style="color: #595959; text-decoration: none;">KPMG</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Falsifying financial results<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/One.Tel" title="One.Tel"><b><span style="color: #595959; text-decoration: none;">One.Tel</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2001<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-19"><sup><span style="color: #595959; text-decoration: none;">[20]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ernst_%26_Young" title="Ernst & Young"><span style="color: #595959; text-decoration: none;">Ernst & Young</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Australia<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Enron" title="Enron"><b><span style="color: #595959; text-decoration: none;">Enron</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2001<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-20"><sup><span style="color: #595959; text-decoration: none;">[21]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="color: #595959; text-decoration: none;">Arthur Andersen</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Jeffrey_Skilling" title="Jeffrey Skilling"><span style="color: #595959; text-decoration: none;">Jeffrey Skilling</span></a>,<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Kenneth_Lay" title="Kenneth Lay"><span style="color: #595959; text-decoration: none;">Kenneth Lay</span></a>,<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Andrew_Fastow" title="Andrew Fastow"><span style="color: #595959; text-decoration: none;">Andrew Fastow</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Adelphia_Communications_Corporation" title="Adelphia Communications Corporation"><b><span style="color: #595959; text-decoration: none;">Adelphia</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-21"><sup><span style="color: #595959; text-decoration: none;">[22]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Deloitte_%26_Touche" title="Deloitte & Touche"><span style="color: #595959; text-decoration: none;">Deloitte & Touche</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/John_Rigas" title="John Rigas"><span style="color: #595959; text-decoration: none;">John Rigas</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/AOL" title="AOL"><b><span style="color: #595959; text-decoration: none;">AOL</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ernst_%26_Young" title="Ernst & Young"><span style="color: #595959; text-decoration: none;">Ernst & Young</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Inflated sales<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Bristol-Myers_Squibb" title="Bristol-Myers Squibb"><b><span style="color: #595959; text-decoration: none;">Bristol-Myers Squibb</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-22"><sup><span style="color: #595959; text-decoration: none;">[23]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/PricewaterhouseCoopers" title="PricewaterhouseCoopers"><span style="color: #595959; text-decoration: none;">PricewaterhouseCoopers</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Inflated revenues<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/CMS_Energy" title="CMS Energy"><b><span style="color: #595959; text-decoration: none;">CMS Energy</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-23"><sup><span style="color: #595959; text-decoration: none;">[24]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="color: #595959; text-decoration: none;">Arthur Andersen</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Round trip trades<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Duke_Energy" title="Duke Energy"><b><span style="color: #595959; text-decoration: none;">Duke Energy</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Deloitte_%26_Touche" title="Deloitte & Touche"><span style="color: #595959; text-decoration: none;">Deloitte & Touche</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Round trip trades<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Dynegy" title="Dynegy"><b><span style="color: #595959; text-decoration: none;">Dynegy</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="color: #595959; text-decoration: none;">Arthur Andersen</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Round trip trades<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/El_Paso_Corporation" title="El Paso Corporation"><b><span style="color: #595959; text-decoration: none;">El Paso Corporation</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Deloitte_%26_Touche" title="Deloitte & Touche"><span style="color: #595959; text-decoration: none;">Deloitte & Touche</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Round trip trades<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Freddie_Mac" title="Freddie Mac"><b><span style="color: #595959; text-decoration: none;">Freddie Mac</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-24"><sup><span style="color: #595959; text-decoration: none;">[25]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Understated earnings<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Global_Crossing" title="Global Crossing"><b><span style="color: #595959; text-decoration: none;">Global Crossing</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="color: #595959; text-decoration: none;">Arthur Andersen</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Bermuda<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Network capacity swaps to inflate revenues<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Halliburton" title="Halliburton"><b><span style="color: #595959; text-decoration: none;">Halliburton</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="color: #595959; text-decoration: none;">Arthur Andersen</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Improper booking of cost overruns<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Move.com" title="Move.com"><b><span style="color: #595959; text-decoration: none;">Homestore.com</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-25"><sup><span style="color: #595959; text-decoration: none;">[26]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Improper booking of sales<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/ImClone_Systems" title="ImClone Systems"><b><span style="color: #595959; text-decoration: none;">ImClone Systems</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-26"><sup><span style="color: #595959; text-decoration: none;">[27]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/KPMG" title="KPMG"><span style="color: #595959; text-decoration: none;">KPMG</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Samuel_D._Waksal" title="Samuel D. Waksal"><span style="color: #595959; text-decoration: none;">Samuel D. Waksal</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Kmart" title="Kmart"><b><span style="color: #595959; text-decoration: none;">Kmart</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-27"><sup><span style="color: #595959; text-decoration: none;">[28]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/PricewaterhouseCoopers" title="PricewaterhouseCoopers"><span style="color: #595959; text-decoration: none;">PricewaterhouseCoopers</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Misleading accounting practices<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Merck_%26_Co." title="Merck & Co."><b><span style="color: #595959; text-decoration: none;">Merck & Co.</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Recorded co-payments that were not collected<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Merrill_Lynch" title="Merrill Lynch"><b><span style="color: #595959; text-decoration: none;">Merrill Lynch</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-28"><sup><span style="color: #595959; text-decoration: none;">[29]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Deloitte_%26_Touche" title="Deloitte & Touche"><span style="color: #595959; text-decoration: none;">Deloitte & Touche</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Conflict of interest<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Mirant" title="Mirant"><b><span style="color: #595959; text-decoration: none;">Mirant</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Overstated assets and liabilities<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Nicor" title="Nicor"><b><span style="color: #595959; text-decoration: none;">Nicor</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="color: #595959; text-decoration: none;">Arthur Andersen</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Overstated assets, understated liabilities<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Peregrine_Systems" title="Peregrine Systems"><b><span style="color: #595959; text-decoration: none;">Peregrine Systems</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/KPMG" title="KPMG"><span style="color: #595959; text-decoration: none;">KPMG</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Overstated sales<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Qwest_Communications" title="Qwest Communications"><b><span style="color: #595959; text-decoration: none;">Qwest Communications</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Inflated revenues<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Reliant_Energy" title="Reliant Energy"><b><span style="color: #595959; text-decoration: none;">Reliant Energy</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Deloitte_%26_Touche" title="Deloitte & Touche"><span style="color: #595959; text-decoration: none;">Deloitte & Touche</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Round trip trades<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Sunbeam_Products" title="Sunbeam Products"><b><span style="color: #595959; text-decoration: none;">Sunbeam</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-29"><sup><span style="color: #595959; text-decoration: none;">[30]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Tyco_International" title="Tyco International"><b><span style="color: #595959; text-decoration: none;">Tyco International</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/PricewaterhouseCoopers" title="PricewaterhouseCoopers"><span style="color: #595959; text-decoration: none;">PricewaterhouseCoopers</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Bermuda<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Improper accounting,<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Dennis_Kozlowski" title="Dennis Kozlowski"><span style="color: #595959; text-decoration: none;">Dennis Kozlowski</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/WorldCom" title="WorldCom"><b><span style="color: #595959; text-decoration: none;">WorldCom</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2002<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-f2002-18"><sup><span style="color: #595959; text-decoration: none;">[19]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Arthur_Andersen" title="Arthur Andersen"><span style="color: #595959; text-decoration: none;">Arthur Andersen</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Overstated cash flows,<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Bernard_Ebbers" title="Bernard Ebbers"><span style="color: #595959; text-decoration: none;">Bernard Ebbers</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ahold" title="Ahold"><b><span style="color: #595959; text-decoration: none;">Royal Ahold</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2003<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-30"><sup><span style="color: #595959; text-decoration: none;">[31]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Deloitte_%26_Touche" title="Deloitte & Touche"><span style="color: #595959; text-decoration: none;">Deloitte & Touche</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Netherlands<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Inflating promotional allowances<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Parmalat" title="Parmalat"><b><span style="color: #595959; text-decoration: none;">Parmalat</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2003<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-31"><sup><span style="color: #595959; text-decoration: none;">[32]</span></sup></a><a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-32"><sup><span style="color: #595959; text-decoration: none;">[33]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Grant_Thornton" title="Grant Thornton"><span style="color: #595959; text-decoration: none;">Grant Thornton</span></a><span class="apple-converted-space"> </span>SpA<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Italy<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Falsified accounting documents,<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Calisto_Tanzi" title="Calisto Tanzi"><span style="color: #595959; text-decoration: none;">Calisto Tanzi</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/HealthSouth_Corporation" title="HealthSouth Corporation"><b><span style="color: #595959; text-decoration: none;">HealthSouth Corporation</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2003<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-33"><sup><span style="color: #595959; text-decoration: none;">[34]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ernst_%26_Young" title="Ernst & Young"><span style="color: #595959; text-decoration: none;">Ernst & Young</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Richard_M._Scrushy" title="Richard M. Scrushy"><span style="color: #595959; text-decoration: none;">Richard M. Scrushy</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Nortel" title="Nortel"><b><span style="color: #595959; text-decoration: none;">Nortel</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2003<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-34"><sup><span style="color: #595959; text-decoration: none;">[35]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Deloitte_%26_Touche" title="Deloitte & Touche"><span style="color: #595959; text-decoration: none;">Deloitte & Touche</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Canada" title="Canada"><span style="color: #595959; text-decoration: none;">Canada</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Distributed ill advised corporate bonuses to top 43 managers<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Chiquita_Brands_International" title="Chiquita Brands International"><b><span style="color: #595959; text-decoration: none;">Chiquita Brands International</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2004<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-35"><sup><span style="color: #595959; text-decoration: none;">[36]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Illegal payments<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/American_International_Group" title="American International Group"><b><span style="color: #595959; text-decoration: none;">AIG</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2004<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-36"><sup><span style="color: #595959; text-decoration: none;">[37]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/PricewaterhouseCoopers" title="PricewaterhouseCoopers"><span style="color: #595959; text-decoration: none;">PricewaterhouseCoopers</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Accounting of structured financial deals<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Madoff_investment_scandal" title="Madoff investment scandal"><b><span style="color: #595959; text-decoration: none;">Bernard L. Madoff Investment Securities LLC</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2008<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-37"><sup><span style="color: #595959; text-decoration: none;">[38]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/David_G._Friehling" title="David G. Friehling"><span style="color: #595959; text-decoration: none;">Friehling & Horowitz</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/United_States" title="United States"><span style="color: #595959; text-decoration: none;">United States</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Massive Ponzi scheme.<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-38"><sup><span style="color: #595959; text-decoration: none;">[39]</span></sup></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Anglo_Irish_Bank" title="Anglo Irish Bank"><b><span style="color: #595959; text-decoration: none;">Anglo Irish Bank</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2008<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-39"><sup><span style="color: #595959; text-decoration: none;">[40]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ernst_%26_Young" title="Ernst & Young"><span style="color: #595959; text-decoration: none;">Ernst & Young</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Ireland<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Anglo_Irish_Bank_hidden_loans_controversy" title="Anglo Irish Bank hidden loans controversy"><span style="color: #595959; text-decoration: none;">Anglo Irish Bank hidden loans controversy</span></a><o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Satyam_Computer_Services" title="Satyam Computer Services"><b><span style="color: #595959; text-decoration: none;">Satyam Computer Services</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2009<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-40"><sup><span style="color: #595959; text-decoration: none;">[41]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/PricewaterhouseCoopers" title="PricewaterhouseCoopers"><span style="color: #595959; text-decoration: none;">PricewaterhouseCoopers</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">India<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Falsified accounts<o:p></o:p></span></div></td></tr>
<tr><td style="background-attachment: initial; background-clip: initial; background-color: #ececec; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: rgb(170, 170, 170); border-left-style: solid; border-left-width: 1pt; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Lehman_Brothers" title="Lehman Brothers"><b><span style="color: #595959; text-decoration: none;">Lehman Brothers</span></b></a><b><o:p></o:p></b></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">2010<a href="http://en.wikipedia.org/wiki/Accounting_scandals#cite_note-41"><sup><span style="color: #595959; text-decoration: none;">[42]</span></sup></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;"><a href="http://en.wikipedia.org/wiki/Ernst_%26_Young" title="Ernst & Young"><span style="color: #595959; text-decoration: none;">Ernst & Young</span></a><o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">United States<o:p></o:p></span></div></td><td style="border-bottom-color: rgb(170, 170, 170); border-bottom-style: solid; border-bottom-width: 1pt; border-left-color: initial; border-left-style: none; border-left-width: initial; border-right-color: rgb(170, 170, 170); border-right-style: solid; border-right-width: 1pt; border-top-color: initial; border-top-style: none; border-top-width: initial; padding-bottom: 2.4pt; padding-left: 2.4pt; padding-right: 2.4pt; padding-top: 2.4pt;"><div class="MsoNormal" style="line-height: 24px; text-align: justify;"><span style="color: #595959; font-family: Arial, sans-serif; font-size: 14pt; line-height: 28px;">Failure to disclose<span class="apple-converted-space"> </span><a href="http://en.wikipedia.org/wiki/Repo_105" title="Repo 105"><span style="color: #595959; text-decoration: none;">Repo 105</span></a><span class="apple-converted-space"> </span>transactions to investors<o:p></o:p></span></div></td></tr>
</tbody></table><div class="MsoNormal" style="line-height: 24px; margin-bottom: 1.2pt; margin-left: 1.2pt; text-align: justify;"><br />
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</o:p></span></div>Financial analysthttp://www.blogger.com/profile/15397665976733677648noreply@blogger.com0