Everything about Enron seemed larger than life. From its glittering Houston head quarter reaching to the sky to its spectacular downfall. But Enron’s collapse was more than just a shattering of one American success story. Enron was the climax of an avalanche of American companies that cost investors as much as 200 billion dollars by issuing deceptive financial reports…
At a point Enron was one of the seventh largest corporations in The United States. Enron was a shining star on Wall Street, and from 1996 to the early 2000’s it was named America’s “Best Managed and Most Innovative Company” by Fortune Magazine. The scandal was revealed in October 2001 and lead to the bankruptcy of Enron Corporation; which sent... a huge wave of shock in the business world from its investors, to employees. Enron's collapse affected the lives of thousands of employees, many pension funds and shook Wall Street to its very core (Seabury). It also lead to the break up Arthur Anderson which was the 5th largest audit and accounting partnership in the world at that time. Many people have wondered how companies as big and successful as Enron can fail. It was the biggest audit failure and also the largest bankruptcy in American history of its time. By the late 2000 Enron had begun to crumble and fall apart. Jeffrey Skilling who was the CEO of Enron at that time was found scandalous in terms of hiding financial losses of the trading market and other aspects of the company by mark to market accounting. Mark to market is trading of securities when an individual determines what the actual value of the security is at that current moment. This can be harmful for other business but can work well for the securities. Mr. Skilling made a team of executives that which through the use of accounting loopholes and poor financial reporting was able to hide billions of losses from failed deals and projects. Enron’s board of directors and audit committee were misled by CFO, Andrew Fartow and other executives on high risk accounting practices. Moreover, the external auditor Arthur Anderson was also pressured to ignore such issues. Enron share price which had hit a high of $90 per share in mid 2000 fell to less than $1 a share by the end of November 2001 and share holders lost nearly $11 billion dollars. The US Security and Exchange Commission began an investigation and at the same time Dynegy, Enron’s Houston based competitor offered to buy Enron at a garage sale price. However, the deal fell through and on December 2001 Enron filed for bankruptcy. At that time, with assets of $63.4 billion, it was the largest corporate bankruptcy is US history. Many Enron executives were indicted for a variety of charges and sentenced to jail. A US court also found Arthur Anderson guilty but the ruling was later over turned by the ...
Cite this document
(“Finance and Accounting Research Paper: Corporate Financial Scandals Paper”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/3766-corporate-financial-scandals
(Finance and Accounting Research Paper: Corporate Financial Scandals Paper)
“Finance and Accounting Research Paper: Corporate Financial Scandals Paper”, n.d. https://studentshare.net/finance-accounting/3766-corporate-financial-scandals.
The International Financial Reporting Standards (IFRS) are a set of guidelines that are sued to guide accountants and financial professionals in preparation and reporting financial information. This paper will discuss the IFRS in terms of its basic information; by discussing its foundation, and how it was formed.
Systems find applications here significantly because they assist in testing controls, reviewing trends and analyzing patterns within digits of critical numeric fields. The automated tools utilized in this important exercise also help in the assurance provision on data related to finance, strategic management, organizational operations and compliance.
A series of bank failures and corporate scandals in United States over the last decade not only affected the US economy but also crashed the global financial system as a whole. The 2008 financial crisis is considered the worst financial crisis after the Great Depression in 1930s.
She came back with an honors degree and for that she was promoted to treasury analyst from the administrative assistant, a post she previously held as she had more so been the president’s secretary, Joe- Bob Brinepool, before she left a year ago. Bernice had the notion that the company was performing very well.
The example of corporate accounting scandals that occurred over the years have been analyzed to find the impacts of unethical accounting practices in such cases. This helped to explain the importance of ethical accounting practices in the companies. The accountability of the accountants and auditors in providing true financial disclosures for protection of the investors has been emphasized in this research.
The market is largely fragmented with many small to medium players serving different niches of their target market. Essentially, the market is distributed into three distinct categories based on product classification. Carlton falls under the category of Chemical suppliers supplying chemicals to independent distributors who then sell to the end users.
Accounting gives a clear picture of the performance of an organization and enables these stakeholders to make informed decisions.
Generally Accepted Accounting Principles are the set of broad and specific rules and concepts that govern financial accounting practices (Wild, 2005).
The capital structure should ideally minimise risk to the enterprise, maximise control to ensure that the promoters continue to stay at the helm, minimise cost of capital or maximise return on investment to shareholders.
If the effect of taxes is ignored then the debt and equity proportions are irrelevant.
Also, assume that the only thing that the Dow Jones sold was one piece of printing equipment for $190,000 in cash.
After reviewing the long term debt section, according to my assessment "Trump AC Funding 11% First Mortgage notes, due 2006" it was clearly indicated that the management of the company funds the mortgage at par and the management of the company issues mortgage notes at par on the secondary market.
Accounting degree is a rewarding degree for individuals as it opens up range of career options to students. The demands for accountants are growing and it is exceeding the supply. The Job opportunities in today’s business climate are far better than ever for accountants.
6 Pages(1500 words)Research Paper
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Research Paper on topic Finance and Accounting Research Paper: Corporate Financial Scandals for FREE!