The Regulation of Financial Reporting Case Study

The Regulation of Financial Reporting - Case Study Example These restatements reduced previously reported net income as follows: 1997, $28 million (27% of previously reported $105 million); 1998, $133 million (19% of previously reported $703 million); 1999, $248 million (28% of previously reported $893 million); and 2000, $99 million (10% of previously reported $979 million). 1 On December 2, 2001, Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. With assets of $63.4 billion, it is the largest US corporate bankruptcy.2The Enron Scandal was the most controversial time for the American Financial Markets as the tax-deferred 401(k) retirement plans of the Enron employees were reduced to nothing. The reason Enron's bankruptcy concerns the field of accounting greatly is that its prominent ,long-time auditor, Arthur Andersen, was charged with a large dereliction of duty and even fraud by the press and members of the US Congress and is still facing countless lawsuits. The current position in the Aftermath of this fiasco is that the Securities and Exchange Commission has called for the creation of a new oversight body to regulate and discipline published financial reporting.The SEC, the Financial Accounting Standards Board (FASB), and the American Institute of CPAs ( AICPA) are all under constant fire for not having clarified and properly implemented the GAAP rules relating to special-purpose entities which were the sham vehicles of Enron's shoddy accounting financial statements. 3 The following table shows some of the accounting statements/figures for Enron 4 This table shows some of the information that was used to mislead the public about the health and wealth of this promising company. Enron became a household name during its zenith, due to its promising financial records. This table shows the data from Enron Corps Annual Reports with its very promising figures concerning the records of its unconsolidated affiliates. _ SUMMARY OF THE EVENTS LEADING TO THE ENRON DISASTER 1996 The use of unconsolidated SPE's allowing the Senior execs to take money from the Enron accounts without the fact showing on the published financial statements- Senior Executives draw large remunerations for themselves ,and an era of shoddy accounting begins with risky ventures and sunk investments paving the way to financial disaster. 1997 Creation of Chewco to hide debt and inflate profits .. 1998 Financial disasters of capital intensive ventures (including a water distribution scheme and power plants in Brazil.) 1999 Permission by the Enron board of directors to waive conflict of interest rules thus allowing Andrew Fastow to run private companies that do business with Enron. The creation of LJM a sham company which is shown on the records to be buying poorly performing Enron assets. Thus a complex and questionable accounting practices saga begins that will lead to the downfall of Enron's 2000 Filing of fraudulent files for the 10-K , 1999 and forged correspondence on accounting matters.There is a large scale sale of Enron shares and more fraudulent filing of accounts for the third quarter of 2000 2001 This was a crucial year for Enron as its Ceo's committed further security fraud by omitting the company's poor financial and the Enron executives got bonus checks for millions of dollars.Ironically at this time Enron was named

Museum vsit Essay Example | Topics and Well Written Essays - 500 words

Museum vsit - Essay Example The layout of the art is diamond in shape. A wall colored in red was visible in the middle of the exhibits. This was the starting point of the exhibit. It contained clear descriptions of the art. The red color symbolized the blood shed during the violence in the communist era. It also illuminates the art work and made it easy for the visitors to see and read the descriptions inscribed on the art.The posters are placed in white frame and hanged up the wall and strategically place to see and understand their significance once the visitors read the descriptions. They are also grouped which makes it easier for the visitors to understand the art work easily. The exhibits are directly lit, softly to enhance the artwork and make it more visible to the public. The exhibits have a combination of warm colors, grey, red and white walls. The grey color is the background of the poster while the red and white are on the wall an element which is simple in nature but aesthetically beautiful to look at. The room where the posters are displayed also have an ambiance that allows one to have a good focus on the posters. The artists and the museum staff arranged the exhibit in such a way that one will read, connect with art work and go back in history to get a clearer picture of the message passed in your mind. The posters had labels on them and some had descriptions on type of art work displayed in the museum. The descriptions told of the history behind the poster and they were didactic in nature. They derived their inspiration from the social injustice in the past as that was the theme of the rebranded. These exhibits were not only pleasing to art lovers but the message behind it is what inspires me as an art enthusiast. Despite few missing descriptions the art could almost be generalized as it was easy to understand especially due to the grouping