Professor Elam

Thursday Sept 29 2016

Weatherford, an energy service firm, has been fined $140 M for over stating earnings.

Officials in charge at the time are now gone.

In  2013 Weatherford paid some $250M for charges that it had violated the Foreign Corrupt Practices Act.

We study ethics in all our accounting classes. Here is a clear failure of establishing the proper Tone at the Top.

Notably the firm is getting higher marks for the current CFO.

We study revenue recognition in Chapter Five of our Spiceland  Text. The point here is that the failure to follow the rules can have very real consequences.