1. Enron:Lapses in Ethical Decision Making
... on its exploitation of a loophole in accounting rules that allowed it to book revenue from huge energy-derivative contracts at their gross value, not their net value as is done with other securities transactions." (Forbes, 1/15/02) Basically instead of reporting the spread difference (between bid and ask price), they would report the entire sale price instead. Many energy companies ... used this accounting style that was legal, but made the numbers look astronomical. The accounting methods used by Enron were definitely the major result in the collapse the corporation took in 2001. Beside...
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- Approx Pages: 11
- Grade Level: High School