... compensation. As part of the capitalization of an entity designed to hedge an investment Enron held in a bankrupt broadband company, a $1.2 billion entry was made to Enron's books to increase notes receivable and shareholder's equity. When these hedging arrangements were terminated to avoid having to issue more than 58 million shares of its" own stock, Enron recorded a loss ... two and a half years. During this period, as a result of improper accounting procedures, net income was overstated by approximately $9 billion, with an offsetting overstatement of capital assets on the balance she...

• Word Count: 2557
• Approx Pages: 10
• Grade Level: Undergraduate