Xerox Scandal Essay example

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Pages: 12

Xerox Corporation
Xerox Corporation is a $16 billion technology and services enterprise that helps businesses deploy smart document management strategies and find better ways to work. It’s intent is to constantly lead with innovative technologies, products and solutions that customers can depend upon to improve business results.
Xerox provides the document industry’s broadest portfolio of offerings. Digital systems include color and black-and-white printing and publishing systems, digital presses and “book factories”, advanced and multifunction systems, laser and solid ink network printers, copiers, and fax machines. Xerox services are unmatched and includes helping businesses develop online document archives, analyzing how employees can
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The Xerox Trademark
Xerox is a famous trademark and trade name. Xerox as a trademark is properly used only as a brand name to identify the company’s products and services. The Xerox trademark should always be used as a proper adjective followed by the generic name of the product: e.g., Xerox printer. The Xerox trademark should never be used as a verb. The trade name Xerox is an abbreviation for the company’s fill legal name : Xerox Corporation.

Xerox is a registered trademark of Xerox Corporation.
Stock Information
Xerox common stock (XRX) was listed on the New York Stock Exchange in 1990. It is also traded on the Boston, Cincinnati, Pacific Coast, Philadelphia, London and Switzerland exchanges.

Xerox was incorporated in New York.
The Problem
On April 11, 2002, the SEC filed a complaint against Xerox. The complaint alleged Xerox deceived the public between 1997 and 2000 by employing several “accounting maneuvers”, the most significant of which was a change in when Xerox recorder revenue from copy machine leases – recognizing a “sale” in the period the lease contract was signed, instead of recognizing revenue ratably over the entire length of the contract. At issue was when the revenue was recognized, not the validity of the revenue. Xerox’s restatement only changed what year the revenue was stated.
Prior to 1997, Xerox had recognized revenue from equipment (copy machine) rentals, or leases, as required by U.S.