The SEC’s allegations in the complaint revolved around seven different accounting practices. But in the end, the main purpose and effect of these manipulative actions was to accelerate Xerox's revenue recognition at the cost of future periods. According to SEC’s complaint, “Xerox fraudulently disguised these actions so that investors remained unaware that the company was meeting earnings expectations only by using accounting maneuvers that could compromise future results” (“Xerox Settles SEC Enforcement,”
