This report explains the market to market approach and special purpose entities used by Enron's management. It also provides examples of measurement methodologies used by PWC Australia and their decision-useful information. Critical analysis of techniques used is also provided.

Advanced Financial Accounting Assessment item 2 — Assignment

Write a report addressing mark-to-market accounting approach, special purpose entities, and stock options compensation scheme used by Enron's management.

Report on Enron's market to market approach, special purpose entities, and PWC Australia's measurement methodologies with critical analysis.

Understanding Mark-to-Market Accounting Approach and Measurement Methodologies

Advance Financial Accounting

This article discusses Enron's misuse of market-to-market accounting, special purpose entities, and stock options compensation scheme. It explores the weaknesses of market-to-market accounting, how Enron's management used special purpose entities to fund contracts, and the primary purpose of the stock options compensation scheme. The article also examines Amazon's measurement methods for financial statements.

Finance

Enron's Misuse of Market-to-Market Accounting, Special Purpose Entities, and Stock Options Compensation Scheme

This essay provides a detailed description regarding fall of the Enron case. It discusses the misuse of mark-to-market accounting approach, special purpose entities, and the stock options compensation scheme provided to top management by Enron Company. It also explains the fundamental principles of the code of conduct of professional accountants.

Enron Case: Misuse of Accounting Theory and Special Purpose Entities

In this document we will discuss about Misuse of Mark-to-Market Accounting and Special Purpose Entities and below are the summary points of this document:-


	
	Enron used mark-to-market accounting approach in its trading business
	
	
	This approach recognized as revenues the present value of projected income streams and expensed the present value of expected future costs
	
	
	Enron reported unrealized gains as part of annual revenues or earnings upon occurrence
	
	
	Enron faced challenges estimating the market value of its contracts due to their long-term nature and feasibility questions
	
	
	Enron used special purpose entities to fund and manage risks of certain assets
	
	
	Special purpose entities were shell companies funded by debt financing and independent equity investors
	
	
	Enron utilized special purpose entities to achieve financial reporting objectives and avoid consolidation
	
	
	Chewco was used to raise guaranteed debt to acquire a stake in joint ventures without revealing debt on the balance sheet
	
	
	Enron inadequately disclosed its relations with special purpose entities and misled shareholders about hedging downside risk in illiquid investments
	
	
	Key staff members partnered with special purpose entities and benefited significantly.
	


Exploring the Fall of Enron: Misuse of Mark-to-Market Accounting and Special Purpose Entities

Case Study

This article discusses Enron's misuse of mark-to-market accounting and special purpose entities, and the high compensation provided to its management. It also evaluates the measurement methodologies used by BHP Billiton and how they provide decision-useful information.

Economics

Advance Financial Accounting: Enron's Misuse of Mark-to-Market Accounting and Special Purpose Entities

This report provides a case study of the downfall of Enron and an evaluation of the five elements as described in the IFRS. It discusses the mark-to-market accounting approach, SPE, and the main purpose of the stock option. It also explains measurement methodologies and the differences between US GAAP and IFRS.

Hartpury University and Hartpury College

Enron: Case Study and Evaluation of IFRS Elements

This article discusses Mark to Market accounting approach, Special Purpose Entities, and Measurement Methodologies in Advanced Financial Accounting. It explains how Enron used these concepts to manipulate financial reporting and deceive investors. The article also covers the decision usefulness of financial reporting and the two methods of measuring bond liabilities.

Advance Financial Accounting

Enron's Misuse of Market-to-Market Accounting, Special Purpose Entities, and Stock Options Compensation Schemelg...

Enron Case: Misuse of Accounting Theory and Special Purpose Entitieslg...

Exploring the Fall of Enron: Misuse of Mark-to-Market Accounting and Special Purpose Entitieslg...

Advance Financial Accounting: Enron's Misuse of Mark-to-Market Accounting and Special Purpose Entitieslg...

Enron: Case Study and Evaluation of IFRS Elementslg...

Advanced Financial Accounting: Mark to Market, Special Purpose Entities, and Measurement Methodologieslg...

Enron's Misuse of Market-to-Market Accounting, Special Purpose Entities, and Stock Options Compensation Scheme

Enron Case: Misuse of Accounting Theory and Special Purpose Entities

Exploring the Fall of Enron: Misuse of Mark-to-Market Accounting and Special Purpose Entities

Advance Financial Accounting: Enron's Misuse of Mark-to-Market Accounting and Special Purpose Entities

Enron: Case Study and Evaluation of IFRS Elements

Advanced Financial Accounting: Mark to Market, Special Purpose Entities, and Measurement Methodologies