The U.S. Securities and Exchange Commission found that Xerox had improperly accelerated recognition of more than 3 billion dollars in equipment lease revenue between 1997 and 2000 to meet Wall Street earnings expectations. Xerox paid a then-record 10 million dollar SEC fine in 2002 and restated years of earnings, while six former executives later settled separate fraud charges, damaging the company's finances and reputation during a period of declining copier sales.
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The early-2000s Xerox restatement of several years of earnings, after the SEC found it had accelerated equipment-lease revenue recognition, is a standard accounting-practice case study in revenue-recognition fraud.
Sources
1. Wikipedia, Xerox Accounting Scandal
WikipediaHistory section, accounting irregularities paragraphQuote, History section, accounting irregularities paragraph
On May 31, 2001, Xerox announced that its auditors, KPMG, had certified Xerox's financial statements for the three years ended December 31, 2000; the financials included some restatements.
1. Wikipedia, Xerox Accounting Scandal
1. Wikipedia, Xerox Accounting Scandal
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