Enron - SI Universidad Iberoamericana UNIBE Bba in...

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SI Universidad Iberoamericana UNIBE Bba in International Business Financial Statement Analysis Professor Shindell Enron’s Fall Valerie Bodden Kluge (10-0014) May 24, 2011 Santo Domingo, Dominican Republic Enron’s Fall
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Bodden- 2 Enron Corporation was one of the world's leading electricity, natural gas, communications and, pulp paper products, right until its collapse in 2001. Having been named America's most innovative company in Fortune Magazine for about six consecutive years, its revenues reached the astonishing amount of at least $101 Billion dollars. However, behind its fortune laid its financial reports full of fraudulent and deceptive information. They used accounting loopholes, special purpose entities, and faulty financial reporting to hide billions of dollars in debt and failed projects. After the fall of Enron the Sarbanes-Oxley Act was passed in order to be certain another thing of this magnitude would not occur. Enron started in 1985, when Kenneth Lay merged Houston Natural Gas and InterNorth to form Enron. (1) They soon moved into the energy market, selling electricity at market prices. Since their markets meant that they could sell energy at higher prices, Enron found itself becoming the largest seller of natural gas in the United States. (2) Enron also achieved further expansion by diversifying their operations to services ranging from broadband to pulp and paper plants. As a result of this diversification,
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This note was uploaded on 08/09/2011 for the course ACCOUNTING --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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Enron - SI Universidad Iberoamericana UNIBE Bba in...

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