This report delves into the Enron scandal, examining the company's misuse of mark-to-market accounting and special purpose entities to portray a misleadingly positive financial picture. It analyzes how these practices contributed to Enron's downfall and highlights the importance of ethical accounting practices. The report also explores the role of stock options in executive compensation and their potential impact on short-term versus long-term performance. Finally, it examines the measurement methodologies used by PWC Australia, analyzing their decision-usefulness and comparing their effectiveness.