Summery of the Case* cant ander attick by woodtont. Olympus Spent Huge Sums on Inflated Acquistons, Adviory Fees to Concent trvestment tosses cempanes. ioswes on secirities imentments Olympus's Tobashischeme feev or ether funsuktions, when mubt cendtions or eamings improve Obmpis Scandal Raises Guestions about the "Japan War" of Doing Business soprinte uovernace Accounting Explanations Here is a more widentandatile verwon of the ewent Audhor Responsiblities Olympus Finally Had Enough of the Deception (Olympus books) DR Cast CR Financial assets (hivestments) Proceeds from seiling underwater investments to unconsolidated subsidlary; may have tilggered galin on sale) (Unconsolidated subsidlary bools) DR Financial assets (envestments) CR Cash (To buy underwater investments from Olympus) PHASE 2 Eventualy the CDs would have to be folied over and brought back in addition, the unrealized losses would have to be widten down eventualy, so the second phase was launched. Trensaction 3 Olycrpus bought some tiny (startup) compan es, They paid signiscantly more than they were worth and pair large amounts for consuttants for their service as finders and intermediaries (Otympus books) DR investments (startup subsidiary) DR Coodwiti- (cast paid less fair markat value of subsidary net assets) CRCash (inveltments in new subsidilines) Nate: The investment in the consalicated subsichary shows a tage amount of goodwis wilch could then be wrtten down (Entries by the newy formed consolidated subsidary Dilcush CR Commonthock. (Cosh investment from Oympus) Fransaction 4 The effect of these transactions was to transfer money into the pewest consolicated subsidiay, which used the money to buy the bad inwestments from the older, unconsolidated subsidiary. The unconsolidated subvidary then tepsid the note payable to the bank and Olympus liquidated lis CD. (Entries by the newy formed consoldated subsidary DR Financlal assets firvestrients) Crcash: (Buy undermater investments from unconsolidited tuDsic ary at book value) (Uncensolidated subsidlary books) DR Cash from consolidated subsidiary CR Frienclal assets (nnvestments) (Proceeds teceived from consolidated subsid ary from sale of underwater investrients) DR Wote payable to barks CRCan (feopoy loan to banks) Entries by Olympus DR Cash CR-Certicate of oeposil (CD liquidated) A good video that discusses the basic facts of the case, the role of Michael Woodtord, corporate governance, and efforts of PwC is at: An update of the legal settement by olympus of the fraud can be found at: Describe the shotcoenings is corporate cultate at Ohmpus