Bausch + Lomb, now a division of Valeant Pharmaceuticals International, Inc. began in 1853 in Rochester, New York, as a small store optical company which has become a multi-billion dollar company with approximately 12,000 employees worldwide. Its mission is to help you see better to live better, as well as to protect and enhance the gift of sight. Its products consist of three different marketed products. The first is its vision care segment which includes products such as contact lenses and solutions to clean and maintain them. Its second product line consists of pharmaceutical products, such as over-the-counter eye drops, as well as medications to treat various eye conditions such as glaucoma and conjunctivitis. Bausch and Lomb's latest product line includes a comprehensive range of products such as intraocular lenses and other surgical equipment needed for cataract and vitreoretinal surgeries (about Bausch + Lomb). However, in the 1990s, the company's vision care business ran into ethical accounting issues related to the shipping of its product and subsequent revenue recognition. The contact lens market began to move away from traditional contact lenses and focus on the new model of frequent replacement and disposable lenses created by Johnson and Johnson (Maremont). Where Bausch and Lomb went wrong is: "The company increased its reported revenue from contact lens and sunglasses sales by shipping the products to warehouses when there were no legitimate orders, secretly agreeing to allow customers to return unwanted lenses and recording sales in warehouses. fiscal year 1993 even though the items were not shipped until after the end of the fiscal year on December 25. (Norris). This process is known as channel stuffing, and is done by forcing...... middle of paper...... a better position than they actually are to encourage additional investment and l approval of new loans. The practice of channel stuffing, although beneficial in the short term, is very detrimental to the long-term financial health of a company. Works Cited “About Bausch + Lomb”. Bausch + Lomb. Np, and Web. May 16, 2014. Financial Accounting Standards Board (FASB). Codification of accounting standards TM. Financial Accounting Standards Board (FASB), 2010. Web. May 16, 2014. Maremont, Mark. “Numbers game at Bausch & Lomb?” Bloomberg Business Week. Bloomberg, December 18, 1994. Web. May 16, 2014. Norris, Floyd. "Bausch & Lomb and the SEC Settle Dispute Over 1993 Earnings." The New York Times. The New York Times, November 18, 1997. Web. May 16, 2014. Plunkett, Linda M. and Robert W. Rouse. “Recognition of income and the Bausch and Lomb affair”. CPA Journal September 1998: n. page. CPA Review. Internet. May 16 2014.