E. Boos – Week 2 – Assignment February 17‚ 2013 The Enron and WoldCom Scandals ENRON 1. The segment of Enron’s operations that got them into difficulties had several parts. They published misleading financial reports. They could not meet their bridge financing commitment with Barclay Bank because outside investors were not found. Because of this‚ they restated activities of JEDI and Chewco SPEs so they could be retroactively consolidated into Enron’s accounts. The SPEs
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ACC 512 – International Accounting CASE 4-1 Bessrawl Corporation Reconciliation from U.S. GAAP to IFRS 2014 Income under US GAAP $1‚000‚000 Adjustments: Reversal of write-down of inventory to replacement cost 10‚000 Additional depreciation on revaluation of equipment (25‚000) Impairment loss on intangible asset (5‚000) Recognition of deferred development costs 80‚000 Reversal of amortization of deferred gain on sale and leaseback (30‚000) Income under IFRS $1‚030‚000 2014 Stockholders’
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ENRON Q1. Summary of Enron Scandal. Enron‚ a Houston-based energy firm founded by Kenneth Lay‚ transformed itself into the world’s largest energy-trading company over its sixteen years of lifespan. In 2001‚ Enron was one of the world’s largest energy groups‚ operating mainly in the USA. Though Kenneth played a smaller role in management‚ following the takeover‚ he soon became chief executive officer (CEO) and moved the headquarters from Omaha to Houston. During 2001‚ it had become apparent
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the public or someone in authority about alleged dishonest or illegal activities. However‚ Sharron Watkins only blew the whistle internally and so did not do everything she was morally required do as Vice President of Corporate Development for Enron. 1. Sharron Watkins ignored the first signs of fraud in a selfish pursuit to develop her own career. When first warning signs of fraud happened in 1996 Watkins protested against them to higher management however got no response. Instead of alerting
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Harnischfeger Corporation • Includes in net sales products purchased from Kobe Steel. Financial Statements of certain foreign subsidiaries are included on the basis of their fiscal years ended July 31. Although this has no significant impact on net income‚ it did increased net sales by $5.4 million. • Perhaps one of the most significant accounting changes would be changing the method for depreciation expenses on plants‚ machinery and equipment – from principally accelerated methods to straight
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limited liability business. NSPCC The purpose of NSPCC is to help children who’ve been abused to rebuild their lives‚ protect children at risk‚ and find the best ways of preventing child abuse. NSPCC is a charity as they are helping the people in this case the children‚ NSPCC being a charity‚ the staff volunteer to work for the business‚ the business is classed as a not for profit organisation and any profit made within the business goes towards the charity. NSPCC is in the tertiary sector in business
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business‚ but he is debating whether to start a S corporation or a C corporation due to potential environmental factors associated with his business. He wants to maintain a limited liability and wants to avoid double taxation by paying himself a salary equal to his companies before tax earnings. He also would like to issue preferred stock to his son in the future to keep his interests in the business. He was advised by his friend to choose a C Corporation to maintain maximum flexibility in the business
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Questions for Jet Blue Case (Case #4) 1. Research on the history of Jet Blue (operational and performance highlights/lowlights/milestones from 2000 to present) a. Identify the “strategic service vision“ of Jet Blue‚ i.e.‚ target market‚ service concept‚ operating strategy‚ and service delivery system. Did their operating strategy and delivery system support the needs of their target market? b. From the research facts‚ did the owners/management of Jet Blue strictly adhere to their strategic service
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Enron Questions 1. How did Enron’s corporate culture contribute to its bankruptcy? Enron’s corporate culture was greedy and arrogant. Arrogance and pride are what mostly contributed to the downfall of Enron. Employees made money for the executives. The company was thought of as a leading company‚ and imagined to be invincible. Once funds were gambled away‚ and the whole got deeper‚ more funds were gambled to attempt to create liquid assets to pay off debt. Eventually‚ it all ran out.
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Is it greed or simply ignorance which caused the Enron Scandal? Enron once was known as "America’s Most Innovative Company" and as of today‚ known as one of the most popular business bankruptcies and failures. Enron appeared to be doing really well‚ producing a lot of cash and new businesses‚ in October of 2001 that all changed. Enron reported a $618 million third-quarter loss and declares a $1.01 billion non-recurring charge against its balance sheet. Partially related to "structured finance" operations
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