unregulated. As Enron’s business model became more complex‚ it began to push the limits of accounting. The two main financial reporting issues that Enron faced consisted of mark-to-market accounting‚ and financial reporting for special-purpose entities (SPEs) that Enron used to implement its light asset strategy and to hedge investment gains. By 2000‚ Enron has hundreds of these
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monitor the auditor’s independence and effectiveness. True and fair view With regard to issues arising from SPE‚ Raptors were not hedges in the economic sense of transferring risk to a third party‚ but rather a means of absorbing losses with a reserve of Enron shares contributed by the hedging entity. However‚ Anderson approved Enron not to consolidate Raptor because Raptor is defined as SPE that means Andersen had seriously breached the true and fair criterion. Enron avoid to put pressures on balance
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SPE 167543 Wellbore Stability Management In Depleted And Low Pressure Reservoirs Fekete Paul O.‚ Dosunmu Adewale‚ Anthony Kuerunwa‚ Ekeinde Evelyn B.‚ Anyanwu Chimaroke‚ and Odagme Baridor S.‚ Dept. of Petroleum and Gas Engineering‚ University of Port Harcourt‚ Nigeria Copyright 2013‚ Society of Petroleum Engineers This paper was prepared for presentation at the Nigeria Annual International Conference and Exhibition held in Lagos‚ Nigeria‚ 30 July–1 August 2013. This paper was selected for presentation
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Enron Corporation began as a small natural gas distributor and‚ over the course of 15 years‚ grew to become the seventh largest company in the United States. Soon after the federal deregulation of natural gas pipelines in 1985‚ Enron was born by the merging of Houston Natural Gas and InterNorth‚ a Nebraska pipeline company. Initially‚ Enron was merely involved in the distribution of gas‚ but it later became a market maker in facilitating the buying and selling of futures of natural gas‚ electricity
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obscure its true financial position? This paper attempts to answer these questions by examining the two financial reporting issues that contributed to Enron’s most significant accounting restatements: the consolidation of special purpose entities (SPEs) and the issuance of stock for notes receivable. 1 The authors gratefully acknowledge the financial support and resources provided by Villanova University’s College of Commerce and Finance. The authors also thank Noah Barsky for comments and
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Auditing a Publicly Traded Company As a Staff I assigned to the audit of a publicly traded company‚ your senior has asked you to evaluate both share-based payment reporting and special purpose entities (SPE) reporting for the company. Research share-based payment reporting and SPE reporting individually. Write a 700- to 1‚050-word executive memo as a team that includes a description of what you will look for to see if the client is consistent with the generally accepted accounting
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eliminates an alternative accounting method; consequently‚ similar economic transactions will be accounted for similarly” (para. 4). Special purpose entities or SPEs are defined by Crawford and Fredericks (2003) as “A separate legal structure created by a firm to provide liquidity and/or obtain favorable external funding” (para. 4). SPEs are often used to reduce larger risk by corporations. These structures assist corporations to obtain financing as well as assets. It appears that with this rule
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Describe the ecclesiology of Sacrosanctum concilium Sacrosanctum concilium‚ the constitution on the liturgy of the Church‚ brought about the liturgical reform post-Vatican II. Though it was the reform of the liturgical practices of the church it had much to say about what the Church is‚ the ecclesiology. Massimo Faggioli says that “the combination of liturgical reform and ecclesiological renewal in the Catholic Church represents the beating heart of Sacrosanctum concilium” (Faggioli 59). The renewal
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Enrons Fall Kenneth Lay – CEO Auditors – Arthur Anderson Jeffrey Skilling – Consultant‚ Hired as a young consultant‚ as due to deregulation‚ Enron incurred massive debts. Jeffrey skilling was hired to come up with innovative new ideas. His revolutionary idea for Enron was to ‘create a gas bank in which Enron would buy gas from a network of suppliers and sell to a network of consumers‚ contractually guaranteeing both the supply and the price‚ charging fees for the transactions and assuming the
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Beaman‚ and Roger T. Kelem (1976)‚ researchers found that children either in a costume‚ concealing their identity‚ or within a group were more likely to steal when left alone with a bowl of candy‚ than those who went trick-or-treating alone. In the SPE guards were given reflective sunglasses to wear throughout the experiment‚ which‚ according to the aforementioned study‚ increases their sense of anonymity. This may form an explanation for their abusive and facist actions towards the prisoners. Furthermore
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