Accounting Practices of Bmy Bristol Myers Squibb Essay

Open, View, and/or
Download this Document

Total Length: 699 words ( 2 double-spaced pages)

Total Sources: 1+

Page 1 of 2

Bristol-Myers Squibb (BMS) is a multinational pharmaceutical company founded in 1989 from two other companies founded in the 1800s. It is headquartered in New York City with revenues of over $9 billion and almost 30,000 employees worldwide. The company manufactures pharmaceuticals in several therapeutic areas: cancer, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis, HIV, and psychiatric disorders. The company's primary research sites are located in New Jersey, Connecticut, Belgium, Tokyo, and Bangalore, India. The company has had some rough times in the past few years, and has been involved in a major restructuring that focuses on both the pharmaceutical and biological products divisions. This restructuring also includes productivity initiatives and cost-cutting/streamlining business operations through a program of layoffs and reduced subsidies for retirees and pensions plan reductions (Dey, 2010).

Accounting Fraud - BMS was involved in a major accounting scandal in 2002 that resulted in the need to drastically restate revenues for the three years of 1999, 2000, and 2001. This was the result of booking sales of excess inventory to customers to create higher sales number, called channel stuffing.

Stuck Writing Your "Accounting Practices of Bmy Bristol Myers Squibb" Essay?

View All Our Example Accounting Practices of Bmy Bristol Myers Squibb Essay

Have A Custom Example Essay Written

Essentially, BMS was accused of fraudulently forcing more products through the distribution channels than could possibly be delivered, usually based on the short-term objectives of making quarterly sales goals but detrimental to the long-term health of the company and the truth and transparency of taxable profits towards shareholders. The process has a number of long-term consequences to the company. Not only does it distort the books, but distributors often return unsold goods that cause fluctuating demand, excess inventory and spiraling distribution control problems. According to the U.S. Justice Department and SEC, BMS:

engaged in a series of anticompetitive acts over the past decade to obstruct the entry of low-price generic competition for three of Bristol's widely used pharmaceutical products: two anti-cancer drugs, Taxol and Platinol, and the anti-anxiety agent BuSpar. Bristol avoided competition by abusing federal regulations to block generic entry; deceived the U.S. Patent and Trademark Office (PTO) to obtain unwarranted patent protection; paid a would-be generic rival over $70 million not to bring any competing products to market;….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Accounting Practices Of Bmy Bristol Myers Squibb" (2012, May 29) Retrieved May 18, 2024, from
https://www.aceyourpaper.com/essays/accounting-practices-bmy-bristol-myers-squibb-58367

Latest MLA Format (8th edition)

Copy Reference
"Accounting Practices Of Bmy Bristol Myers Squibb" 29 May 2012. Web.18 May. 2024. <
https://www.aceyourpaper.com/essays/accounting-practices-bmy-bristol-myers-squibb-58367>

Latest Chicago Format (16th edition)

Copy Reference
"Accounting Practices Of Bmy Bristol Myers Squibb", 29 May 2012, Accessed.18 May. 2024,
https://www.aceyourpaper.com/essays/accounting-practices-bmy-bristol-myers-squibb-58367
   

Open, View, and/or
Download this Document
order custom essay example