This case study delves into the downfall of Enron, examining the accounting practices that led to its collapse. It focuses on the use of mark-to-market accounting, special purpose entities (SPEs), and stock options, highlighting how these mechanisms were manipulated to misrepresent the company's financial health. The report references an article by Paul M. Healy and Krishna G. Palepu, providing a detailed analysis of Enron's fraudulent activities and their impact on investors. Additionally, the study compares International Financial Reporting Standards (IFRS) with US Generally Accepted Accounting Principles (GAAP), using Wesfarmers Ltd and Mackay Golf Club as examples to illustrate the differences in financial statement presentation and valuation methods. The analysis concludes that while both IFRS and US GAAP have their strengths, IFRS offers simpler and more understandable methods for recognizing and measuring assets and liabilities.