The problem with scams such as these is that you get greedy; you want to much. Once you've made the amount you've set for yourself getting out would be the right thing to do, for yourself. While it's ethically wrong, if you're a con artist then moral values aren't that big of an issue.
You can do it but you gotta learn where to stop. These people couldn't do that haha. I'm sorry but, we're all inherently greedy, otherwise Mr. Adam wouldn't have eaten that darn apple.
This is an awesome video, fanx to portfolio32. I was at university in 2009 majoring in Accounting and Money & Finance. I did an analysis on Enron and WorldCom looking at the major issues. I've seen the smartest guys in the room and also read Cynthia Cooper's "Journey of a corporate whistleblower" and i have admit these two are one of the most magnificent but infamous corporate fraud of the century. Once again thank you and nice video
Oh my how scary it is that educated seemingly educated people can be so stupid- take for example georgiapeach30534 -she read the book and watched the movie and got the t shirt and still doesn't see the parallel of the 2 largest corporate bankruptcies in US history?? Did she go to school with Miss South Carolina? It's scary how stupid young people are these days. Instead of reading young people only care about what Kim Kardashian and Brintey Spears are doing
The video shows incorrect information. According to HBR Case "WorldCom Inc.: What Went Wrong?" (905M43-PDF-ENG) they were billed several months after they used the lines. According to the matching principle, you have to record expenses in the period in which the related revenues are recorded. Since they were billed later on, they had to estimate the accruals. They underestimated them. In addition they capitalized their excess capacity in the lines instead of registering them as expenses.
The video shows incorrect information. According to HBR Case "WorldCom Inc.: What Went Wrong?" (905M43-PDF-ENG) they were billed several months after they used the lines. According to the matching principle, you have to record expenses in the period in which the related revenues are recorded. Since they were billed later on, they had to estimate the accruals. They underestimated them. In addition they capitalized their excess capacity in the lines instead of registering them as expenses.
Hello. Thank you very much for this video, it was very suggestive and well done. Do you have Worldcom's financial statements for 2001 and 2002? I am doing a project about Worldcom for Financial Management class and I can't find the financial statements anywhere. Could you please help me?
Awsome vid, i got a question though, would all the bonuses paid out by the banks in the U.S. from the simulus money they received from the taxpayers be considered a scandal?
I'm doing a (BIG) project over Enron & WorldCom for my AP Macroeconomics class. I've been researching for weeks and (sadly) I still feel like I don't really have a grip on what happened between the two companies. Granted, I know more about Enron than WorldCom because I've read the book and movie "The Smartest Guys in the Room" and numerous articles. But how are the companies related, if at all? And what led to the downfall of these "great" companies?
if you've seen "Smartest Guys in the Room", the woman @ the start sums it up best by saying that the #1 thing which led to Enron's demise was PRIDE (not complex accounting, though mark to market and LJM certainly helped).With any fraud, look at the leadership atmosphere & culture that led the org down the crooked road -- *that* was basically the point of this video, as well as to explain what was actually going on accounting-wise. study sarbanes oxley etc. for more of the related legal outcomes
@georgiapeach30534 They are "related" via Arthur Anderson (sp) - You'll notice the common link between the two companies was AA. I am interested more in AA's role, but I think it was further summed up in The Smartest Guys in the Room when they said simply, "It was complicity across the board." As for Enron, I was reminded actually of Seinfeld, where the last ep, the judge said, "I don't know under what circumstances you found each other..." speech.
@georgiapeach30534 "I don't know how, or under what circumstances, the four of you found each other, but your callous indifference and utter disregard for everything that is good and decent has rocked the very foundation upon which our society is built." - Judge Art Vandelay, in "The Finale"
Just saw Hanging with Dick and Jane that movie is based off WorldCom and Enron. Pretty interesting stuff! Greedy Bastards just imagine all the people they ripped off....
I'm not an accountant, so maybe I just don't understand this part, but I am interested in learning what they did that was considered wrong, in this regard.
I'm an accountant. Maybe I can explain. They were wrong because they were reporting to the public, "I made $20 billion this year" when in reality it was maybe $10 billion because they did not subtract those expenses from their income. So it appeared to their competitors and the rest of the world that they were doing really good and making more money than the other companies in the same business. This makes their stock price go up and all the board directors get more money. Did that help?
You say at 2:28 that "they capitalized their long distance line costs". Are you saying that when they did a 'build-out' such as laid more cable to make their telecom network bigger? If that is what you meant, then I do not see how that could be considered fradulent. Using your earlier example about the gasoline, the gas gets used up when you drive the truck, however the lines that Worldcom laid are physical infrastructure that never go away, so why would they be considered a company asset?
they capitalized the line costs (line costs = interconnection expenses with other telecommunication companies) *associated* with the networks; these costs did not generate revenue, like the gas & truck example. It's a little tough to even decide these expenses with telephone companies in the first place b/c it often has to be estimated anyway. When fudging those #s didn't work, they started moving them to the balance sheet, hence fraud. let me know if that makes sense :)
Cool, I understand it more now; that clears it up better. So those costs are really more like service fees, definitely don't fit under the "asset" category.
I love that show on CNBC called "American Greed". I have Tuesday's show recorded on DVR covering the Worldcom case. I'm going to watch it tonight if I have time.
awesome vid, corrupting with real money isn't cool at all
AntDX316 1 day ago
U dudes rock!
mrzipdisk 1 week ago
sayang na company fraud pla!
adelle0001 3 months ago
nice!
Agentxpoipoi 3 months ago
The problem with scams such as these is that you get greedy; you want to much. Once you've made the amount you've set for yourself getting out would be the right thing to do, for yourself. While it's ethically wrong, if you're a con artist then moral values aren't that big of an issue.
rprx 3 months ago
You can do it but you gotta learn where to stop. These people couldn't do that haha. I'm sorry but, we're all inherently greedy, otherwise Mr. Adam wouldn't have eaten that darn apple.
wholelover 3 months ago
Was this for Fred?
laurenH13 4 months ago
@laurenH13 haha nope. wish I would've had him for 201 though
portfolio32 3 months ago
Hi folks,
This is an awesome video, fanx to portfolio32. I was at university in 2009 majoring in Accounting and Money & Finance. I did an analysis on Enron and WorldCom looking at the major issues. I've seen the smartest guys in the room and also read Cynthia Cooper's "Journey of a corporate whistleblower" and i have admit these two are one of the most magnificent but infamous corporate fraud of the century. Once again thank you and nice video
motutapili11 8 months ago
Correction, Worldcom is not the largest coporate fraud. An update Madoff tops it off at 2009.
nwcigotbetter2001 10 months ago
Oh my how scary it is that educated seemingly educated people can be so stupid- take for example georgiapeach30534 -she read the book and watched the movie and got the t shirt and still doesn't see the parallel of the 2 largest corporate bankruptcies in US history?? Did she go to school with Miss South Carolina? It's scary how stupid young people are these days. Instead of reading young people only care about what Kim Kardashian and Brintey Spears are doing
70sRob 11 months ago
Awesome!
ruspution 1 year ago
The video shows incorrect information. According to HBR Case "WorldCom Inc.: What Went Wrong?" (905M43-PDF-ENG) they were billed several months after they used the lines. According to the matching principle, you have to record expenses in the period in which the related revenues are recorded. Since they were billed later on, they had to estimate the accruals. They underestimated them. In addition they capitalized their excess capacity in the lines instead of registering them as expenses.
masuarezdl 1 year ago
The video shows incorrect information. According to HBR Case "WorldCom Inc.: What Went Wrong?" (905M43-PDF-ENG) they were billed several months after they used the lines. According to the matching principle, you have to record expenses in the period in which the related revenues are recorded. Since they were billed later on, they had to estimate the accruals. They underestimated them. In addition they capitalized their excess capacity in the lines instead of registering them as expenses.
masuarezdl 1 year ago
I thought Arthur Andersen went down with Enron in 2001??? How were they around to screw around with WorldCom?
vaibanez17 1 year ago
forget enron and worldcom for a sec...... WHY THE HELL WERENT THE SUPPOSED AUDTIORS, ARTHUR ANDERSON, NOT DOING THERE JOB!!!!!!...........
zeekyboi123 1 year ago 2
nicely done!!!
yuenj01 1 year ago
I wonder how many of the greedy ones are skull and bones members, attend bohemian grove, are rhodes scholars.
badattitude77769 1 year ago
Good video, amazing the amount of fraud these days, but I have to ask....How come he received 25 years when Madoff received 150?
Walpington Production
Walpernator 1 year ago
Thanks, useful case study for ACCA courses.
ladyevet 1 year ago
yes, its really worth it <3
trivium4life93 1 year ago
Hello. Thank you very much for this video, it was very suggestive and well done. Do you have Worldcom's financial statements for 2001 and 2002? I am doing a project about Worldcom for Financial Management class and I can't find the financial statements anywhere. Could you please help me?
ButterflySmile80 1 year ago
Nicely done, I've done video presentations for my classes and it's way more fun than standing up in front of the class presenting off of Powerpoint.
atmatheprophet 1 year ago
I thought Madoff was serving 150 years in prison for that
danielle409600 1 year ago
Greed for Money and Gold makes you a Deviant.
vgcq02 1 year ago
Awsome vid, i got a question though, would all the bonuses paid out by the banks in the U.S. from the simulus money they received from the taxpayers be considered a scandal?
Saleenrulz 2 years ago
haha best let wiki try and answer this one: search "AIG bonus payments controversy"
portfolio32 2 years ago
I'm doing a (BIG) project over Enron & WorldCom for my AP Macroeconomics class. I've been researching for weeks and (sadly) I still feel like I don't really have a grip on what happened between the two companies. Granted, I know more about Enron than WorldCom because I've read the book and movie "The Smartest Guys in the Room" and numerous articles. But how are the companies related, if at all? And what led to the downfall of these "great" companies?
georgiapeach30534 2 years ago
if you've seen "Smartest Guys in the Room", the woman @ the start sums it up best by saying that the #1 thing which led to Enron's demise was PRIDE (not complex accounting, though mark to market and LJM certainly helped).With any fraud, look at the leadership atmosphere & culture that led the org down the crooked road -- *that* was basically the point of this video, as well as to explain what was actually going on accounting-wise. study sarbanes oxley etc. for more of the related legal outcomes
portfolio32 2 years ago
@georgiapeach30534 theres no relation
Axl207 1 year ago
@georgiapeach30534 They are "related" via Arthur Anderson (sp) - You'll notice the common link between the two companies was AA. I am interested more in AA's role, but I think it was further summed up in The Smartest Guys in the Room when they said simply, "It was complicity across the board." As for Enron, I was reminded actually of Seinfeld, where the last ep, the judge said, "I don't know under what circumstances you found each other..." speech.
gtrgdss 8 months ago
@georgiapeach30534 "I don't know how, or under what circumstances, the four of you found each other, but your callous indifference and utter disregard for everything that is good and decent has rocked the very foundation upon which our society is built." - Judge Art Vandelay, in "The Finale"
gtrgdss 8 months ago
That was a good video!
arissraj 2 years ago
honorary doctorate!!!!!!!
Berialavrenti 2 years ago
good point
portfolio32 2 years ago
Really well done.
mml4643 2 years ago
what is the name of this song.thanks
yoyo2112 2 years ago
it's called "Apasionada" by the AMAZING young pianist William Joseph off his newest album "Beyond".
portfolio32 2 years ago
Just saw Hanging with Dick and Jane that movie is based off WorldCom and Enron. Pretty interesting stuff! Greedy Bastards just imagine all the people they ripped off....
qwesence1 2 years ago
the iron sheik would do it and so i would follow the iron sheik!
Berialavrenti 2 years ago
well done,great work...
sraddawa 2 years ago
Arthur Andersen have a lot to answer for.
VandalCatt 2 years ago
I'm not an accountant, so maybe I just don't understand this part, but I am interested in learning what they did that was considered wrong, in this regard.
x0ml 2 years ago
i'm no accountant either -- just a third year marketing student haha
portfolio32 2 years ago
I'm an accountant. Maybe I can explain. They were wrong because they were reporting to the public, "I made $20 billion this year" when in reality it was maybe $10 billion because they did not subtract those expenses from their income. So it appeared to their competitors and the rest of the world that they were doing really good and making more money than the other companies in the same business. This makes their stock price go up and all the board directors get more money. Did that help?
Affro2442 2 years ago
it does, thanks.
x0ml 2 years ago
You say at 2:28 that "they capitalized their long distance line costs". Are you saying that when they did a 'build-out' such as laid more cable to make their telecom network bigger? If that is what you meant, then I do not see how that could be considered fradulent. Using your earlier example about the gasoline, the gas gets used up when you drive the truck, however the lines that Worldcom laid are physical infrastructure that never go away, so why would they be considered a company asset?
x0ml 2 years ago
good question
they capitalized the line costs (line costs = interconnection expenses with other telecommunication companies) *associated* with the networks; these costs did not generate revenue, like the gas & truck example. It's a little tough to even decide these expenses with telephone companies in the first place b/c it often has to be estimated anyway. When fudging those #s didn't work, they started moving them to the balance sheet, hence fraud. let me know if that makes sense :)
portfolio32 2 years ago
Cool, I understand it more now; that clears it up better. So those costs are really more like service fees, definitely don't fit under the "asset" category.
I love that show on CNBC called "American Greed". I have Tuesday's show recorded on DVR covering the Worldcom case. I'm going to watch it tonight if I have time.
x0ml 2 years ago
nice vidoe
suballica 3 years ago
awesome
lomat 3 years ago
this video is great!
sayra88 3 years ago
I like the clip at the end of the guy from Sin City. yeeesh
Clompintime 3 years ago
nice video.
kevincrazy21 3 years ago