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Evaluation of Enron's Corporate Failure and Analysis of US GAAP and IFRS Methods for Measuring Financial Elements

   

Added on  2023-06-03

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Assessment Part A
Evaluation of Enron's Corporate Failure and Analysis of US GAAP and IFRS Methods for Measuring Financial Elements_1

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Executive Summary
The report carried out an evaluation of the case stud related to corporate failure of Enron.
It has been identified through the evaluation of the report that the accounting practice of mark-
to-market accounting has facilitated the top managers to overstate its profitability position by
recognizing unrealized gains within its income sheet. Also, the special purpose entities were
created specifically for hiding the debt liabilities and thus disclosing manipulated financial
information to the end-users. In addition to this, the use of employee stock options scheme has
caused the motivation to managers to improve firm performance as stated by the agency theory.
Evaluation of Enron's Corporate Failure and Analysis of US GAAP and IFRS Methods for Measuring Financial Elements_2

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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Case Study Analysis........................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
Evaluation of Enron's Corporate Failure and Analysis of US GAAP and IFRS Methods for Measuring Financial Elements_3

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