hey, my name's Gabe (they/them). This was the beginning of the end however. as a transgender non-binary person, it's a nice way to avoid having to go out of my way to correct people when I'm misgendered in conversation. Enron sold CrossCountry Energy for $2.45 billion in order to address some of the credit outstanding. Skilling brought with him a style of accounting called mark-to-market accounting (McLean & Elkind, 2005). those are my pronouns and that's a way I can let you know. McLean and Elkind are credited as writers of the film alongside the director, Alex Gibney. The main difference is that each executive still holds most of their net worth in company stock. Enron employee Sherron Watkins sends letter to Ken Lay warning of accounting irregularities that could pose a threat to the company. Enron allowed Andrew Fastow, the Chief Financial Officer to control two SPE’s (special purpose entities) that were knowingly connected to Enron, and gave him an opportunity to abuse his power. Sherron Watkins, the Enron vice president who first called her company's finances into question, listens to a question following her keynote address to … In 2007, the company’s name was changed and set a goal to completely repay all creditors and end all its activities (Wikipedia). Enron’s Chief Accounting Officer Rick Causey was meant to keep Fastow in check, but he saw his job as facilitating Fastow’s transactions. Enron duly recruited him to run this business and he rapidly built up a major gas trading operation through the early nineties. Many of Enron’s SPE’s failed on all three criteria. The Enron Corporation was a U.S. energy, services and commodities company with headquarters in Houston, Texas. * Enron: The Smartest Guys in the Room is a 2005 American documentary film based on the best-selling 2003 book of the same name by Fortune reporters Bethany McLean and Peter Elkind, a study of one of the largest business scandals in American history. Any asset that was hedged should, for the most part, have a locked-in sales value for Enron, meaning that despite current market prices, Enron should realize the hedged price of the Raptor. Ken Lay makes a presentation to employees Around the same time, he also cashes in many of his Enron share options . When its last business was sold, it left Enron without any assets. Enron typically used the Equity Method of accounting for SPE’s meaning they simply added Enron’s proportional share in the earnings of each SPE in a single line item on its income statement without disclosing corresponding balance sheet, cash flow and other considerations. Mark-to-market is based off hypothetical future value of assets, meaning that Enron could essentially use projected profits in their accounting, even if no actual money was coming in. This does not mean that Buffett or Bezos’ companies are likely to have a fate similar to Enron’s. 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