What are the differences and similarities between Enron and WorldCom cases and their accounting information© BrainMass Inc. brainmass.com June 4, 2020, 1:21 am ad1c9bdddf
The main focus of the Enron case centered on the misuse of SPEs. The company wanted to appear financially strong, so they took poor performing assets, hid them into Special Purpose Entities (SPEs), and consolidated them. By doing do, the company never disclosed the poor performing assets, which indicated the real financial health of the company, to the public. Enron also used a very aggressive revenue recognition policy to record their trades, whereby they used 100% of ...
This solution discusses the differences and similarities between Enron and Worldcom cases.