Accounting rules to prevent this from happening again
Not what you're looking for?
SPE's continue to have legitimate uses in business. Often they are used to isolate high risk projects from the rest of the corporation, or joint projects with other companies. The problem with the SPE's as the related to Enron and the like, is that they were being used to create fictional transactions to mislead investors as to company profitability. If these entities were properly consolidated then it would have washed out in the combination.
The way they were able to get away without consolidation is that they didn't own a controlling interest, even though owned substantially all of the assets and risk of loss.
What changes were made to accounting rules to prevent this from happening again?
Purchase this Solution
Solution Summary
The accounting rules to prevent SPE's from happening again are determined.
Solution Preview
Dear Student,
Thank you for using BM.
Below are my answers.
Sincerely,
Anna Liza Gaspar
ANSWERS
NOTE: In the OTA's own words in accordance with BM rules
If you remember, special purpose vehicles, special purpose entities, variable ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.