Presentation is loading. Please wait.

Presentation is loading. Please wait.

Enron Fortune 500 company Largest power and natural gas company Revenue- $100 bn 1992- Dhabol power contract in India 2001- suddenly reported losses of.

Published byChristal Henderson Modified over 8 years ago

Similar presentations

Presentation on theme: "Enron Fortune 500 company Largest power and natural gas company Revenue- $100 bn 1992- Dhabol power contract in India 2001- suddenly reported losses of."— Presentation transcript:

1 Enron Fortune 500 company Largest power and natural gas company Revenue- $100 bn 1992- Dhabol power contract in India 2001- suddenly reported losses of $600 bn SEC investigated and found frauds Filed bankruptcy in 2001

2 Enron – unethical practices Heavy political donations Influenced public policies for own benefits Dubious accounting policies (overstating profits) Shifting losses to subsidiaries Kept of debt from Balance sheet to protect rating

3 Enron Arthur Anderson (Auditors) collapsed Many Executives jailed Sarbanes Oxley Act passed

4 Worldcom Large telecom service provider More than 60 M&As CEO with no telecom expertise Board left everything to CEO Only motive was to show profits Capitalised large revenue expenditure Inflated profits

5 Worldcom Submitted dubious financial statements to SEC Irregular entries in accounts on verbal instructions Company collapsed in Jan 2004 with huge loses Auditor- Arthur Anderson, colluded CEO awarded 25 years jail

Download ppt "Enron Fortune 500 company Largest power and natural gas company Revenue- $100 bn 1992- Dhabol power contract in India 2001- suddenly reported losses of."

Similar presentations

Economics 330 Money and Banking Lecture 8 and 9

Economics 330 Money and Banking Lecture 8 and 9
© 2007 PROSKAUER ROSE LLP® SARBANES-OXLEY ACT OF 2002 Presented by: Julie M. Allen 212.969.3155.

© 2007 PROSKAUER ROSE LLP® SARBANES-OXLEY ACT OF 2002 Presented by: Julie M. Allen
Accounting Principles, Ninth Edition

Accounting Principles, Ninth Edition
Company Finances and Corporate Governance. Corporate Governance = The way companies are run and the accountability of the managers to their owners. Auditing:

Company Finances and Corporate Governance. Corporate Governance = The way companies are run and the accountability of the managers to their owners. Auditing:
Sarbanes-Oxley Act of 2002 Implements Sweeping Changes Affecting Corporate Governance and Disclosure, the Accounting Industry and Penalties for Securities.

Sarbanes-Oxley Act of 2002 Implements Sweeping Changes Affecting Corporate Governance and Disclosure, the Accounting Industry and Penalties for Securities.
Chapter 19-Securities Securities Regulation Public Offerings of New Securities. zWhen “going public” there are many different types of securities that.

Chapter 19-Securities Securities Regulation Public Offerings of New Securities. zWhen “going public” there are many different types of securities that.
Enron: An Extended Case Study

Enron: An Extended Case Study
Corporate Governance: Beyond Compliance

Corporate Governance: Beyond Compliance
Corporate Ethics and Leadership Presented at National Chung Cheng University January 9, 2006 Jason Lin, Ph.D. Professor of Business Administration Truman.

Corporate Ethics and Leadership Presented at National Chung Cheng University January 9, 2006 Jason Lin, Ph.D. Professor of Business Administration Truman.
Window dressing & false accounting

Window dressing & false accounting
Who’s Minding the Store - Regulating the Securities Industry Securities and Investments.

Who’s Minding the Store - Regulating the Securities Industry Securities and Investments.
The Enron Scandal – Timeline

The Enron Scandal – Timeline
Enron Scandal Rebecca Klinger & Aaron Cooper. What is it. Enron was formed in 1985 by Kenneth Lay After merging Houston natural Gas. Revealed in October.

Enron Scandal Rebecca Klinger & Aaron Cooper. What is it. Enron was formed in 1985 by Kenneth Lay After merging Houston natural Gas. Revealed in October.
SPEs as Off-Balance Sheet Vehicles. Paul Zarowin2 Key Issues Special purpose entities (SPE) Synthetic leases Enron case.

SPEs as Off-Balance Sheet Vehicles. Paul Zarowin2 Key Issues Special purpose entities (SPE) Synthetic leases Enron case.
Presented by Joe, Erin, Rich, Arthur, Yihan.. Principal-agent Equity contracts- share in the profit of business The principals are stockholders who own.

Presented by Joe, Erin, Rich, Arthur, Yihan.. Principal-agent Equity contracts- share in the profit of business The principals are stockholders who own.
1 GLOBAL CORPORATE GOVERNANCE. 2 3 GOVERNANCE SCANDALS 2001: Enron Corp. (Fastow – CFO, Lay – Chairman and CEO, and Skilling – CEO) creation of off-the-books.

1 GLOBAL CORPORATE GOVERNANCE. 2 3 GOVERNANCE SCANDALS 2001: Enron Corp. (Fastow – CFO, Lay – Chairman and CEO, and Skilling – CEO) creation of off-the-books.
Sarbanes Oxley Act. WHY? Public Company Accounting Reform and Investor Protection Act of 2002 Response to a number of major corporate and accounting scandals.

Sarbanes Oxley Act. WHY? Public Company Accounting Reform and Investor Protection Act of 2002 Response to a number of major corporate and accounting scandals.
© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin The Accounting Cycle Reporting Financial Results Chapter 5.

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin The Accounting Cycle Reporting Financial Results Chapter 5.
Sarbanes-Oxley: where Information-Technology, Finance and Ethics Meet

Sarbanes-Oxley: where Information-Technology, Finance and Ethics Meet
FORENSIC ACCOUNTING - BA124 - Fall 2009Slide 10-1 Today’s Topics n Transparency Barriers n Nature of Financial Fraud n Detection of Financial Fraud n Shenanigan.

FORENSIC ACCOUNTING - BA124 - Fall 2009Slide 10-1 Today’s Topics n Transparency Barriers n Nature of Financial Fraud n Detection of Financial Fraud n Shenanigan.

Similar presentations

Ads by Google