Enron and WorldCom FIN/486 December 22‚ 2014 Enron and WorldCom In 1998‚ Waste Management executives acknowledged earnings misstatements of approximately $1.7 billion. With the help of the Arthur Anderson accounting firm‚ Waste Management shareholders lost more than $6 billion dollars (CNN‚ 2001). The Waste Management corruption ushered in a series of corporate scandals into the new millennium. Enron and WorldCom were only two of many ethical and accounting violations that prompted new legislation
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The Enron scandal A brief on Enron’s history Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth. In the early 1990s‚ he helped to initiate the selling of electricity at market prices‚ The resulting markets made it possible for traders such as Enron to sell energy at higher prices‚ thereby significantly increasing its revenue. As Enron became the largest seller of natural gas in North America by 1992‚ Enron pursued a diversification strategy
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Enron Scandal In 1985‚ Enron was formed by Kenneth Lay after the merging of Houston Natural Gas and InterNorth. In the 1990s‚ Lay helped to initiate the selling of electricity at market prices. Markets made it easier for Enron to sell energy at higher prices‚ which caused the company to get richer. Enron was the largest merchant of natural gas in 1992. In November 1999‚ the creation of EnronOnline enabled Enron to develop‚ negotiate and manage its trading business. By 2001‚ Enron became a
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Prior to the East India Company’s establishment‚ Britain only accounted for 1.8% of the global GDP whereas India accounted for 23% of it. [Forbes‚ 1] India was one of the richest and most developed economies in the world. In fact‚ India and China together accounted for almost three-quarters of the global industrial output. However‚ India was “transformed by the process of imperial rule into one of the poorest‚ most backward‚ illiterate and diseased societies on earth by the time of our independence
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An Interpretation: Who was Anne Bradstreet? While reading the poetry of Anne Bradstreet‚ the straightforward Puritanical figure emerges‚ as well as the loving‚ caring person she was. She was truly a faithful puritan‚ but she was also a daughter‚ wife‚ mother‚ scholar and critic. In her poetry she balances both sides. In the poem "Upon the Burning of Our House" she is definite in her belief in God‚ and shows her spiritual growth as she learns amazing‚ heartfelt lessons. This poem could
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Enron History Special Purpose Entities (SPEs) were used and often abused by most large corporations in the late 1990’s. Enron was likely the corporation that abused the accounting treatment the most‚ but certainly not the only one. The Enron SPEs were not hidden from the auditors or the investing public‚ but were so extensive‚ invasive‚ and complex that no one‚ including primary architect‚ Andrew Fastow‚ was able to understand the total implications. The 2000 financial statements for Enron included
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Parmalat It has been named as “Europe’s Enron” – the legend that took down Italy’s milk selling company Parmalat and its controlling executives‚ American banks‚ audit firms‚ even politicians and 130‚000 of its helpless small shareholders after the discovery in the year 2003 of the $14 Billion black hole in the company’s finances. The company’s fraud was uncovered when the company failed to pay the cash to the bondholders. Summary: This discovery led to eight years of court cases in Europe
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consent no matter in the present or in the past given by the person who is killed‚ since they are not in a position to give or refuse consent‚ but the decision is made by their family‚ friends‚ or doctor acting "on their behalf". Involuntary euthanasia consists of killing someone who explicitly requests not to be killed. There is generally no support for this practice. Is Euthanasia morally or not morally? In my opinion‚ euthanasia is morally acceptable. This is due to I think that all human have their
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contribute to the Enron disaster? Arthur Andersen (AA) contributed to the Enron disaster when AA consulting became its own separate entity‚ named Accenture. Revenues from consulting services surpassed revenue from auditing services. A natural competitiveness grew between the two rivals and this is where the problems began to start. Management held maximinizing revenues as their primary focus of success and promotions/bonuses were based on this factor. The CEO of AA‚ Joe Berardino‚ was an extremely aggressive
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What were the business risks enron faced‚ and how did those risks increase the likelihood of material misstatements in enron’s financial statement Enron faces most of the risk ordinarily faced by any energy company‚ including price instability and foreign currency risks. Enron operated in many different areas of the world with different regulatory and political risks. Enron faced business risks such as a complex business model‚ extensive use of derivatives and special purpose entities‚ aggressive
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