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    A Presentation On Scam "Enron": Presented To

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    Suren Theannilawu
    The document presents information on the Enron scandal, including definitions of corporate governance, the parties involved in corporate governance, and the four pillars of corporate governance. It then provides details on special purpose entities (SPEs) and how Enron used SPEs to hide losses, treating sales of assets to SPEs as earnings even though the SPEs were not truly independent from Enron. This allowed Enron to hide billions in losses until auditors required the company to consolidate the SPEs, resulting in a $1 billion charge against earnings.

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    A Presentation On Scam "Enron": Presented To

    Uploaded by

    Suren Theannilawu
    13 views5 pages
    The document presents information on the Enron scandal, including definitions of corporate governance, the parties involved in corporate governance, and the four pillars of corporate governance. It then provides details on special purpose entities (SPEs) and how Enron used SPEs to hide losses, treating sales of assets to SPEs as earnings even though the SPEs were not truly independent from Enron. This allowed Enron to hide billions in losses until auditors required the company to consolidate the SPEs, resulting in a $1 billion charge against earnings.

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    ENRON

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    Surens Presentation

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    The document presents information on the Enron scandal, including definitions of corporate governance, the parties involved in corporate governance, and the four pillars of corporate governance. It then provides details on special purpose entities (SPEs) and how Enron used SPEs to hide losses, treating sales of assets to SPEs as earnings even though the SPEs were not truly independent from Enron. This allowed Enron to hide billions in losses until auditors required the company to consolidate the SPEs, resulting in a $1 billion charge against earnings.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    13 views5 pages

    A Presentation On Scam "Enron": Presented To

    Uploaded by

    Suren Theannilawu
    The document presents information on the Enron scandal, including definitions of corporate governance, the parties involved in corporate governance, and the four pillars of corporate governance. It then provides details on special purpose entities (SPEs) and how Enron used SPEs to hide losses, treating sales of assets to SPEs as earnings even though the SPEs were not truly independent from Enron. This allowed Enron to hide billions in losses until auditors required the company to consolidate the SPEs, resulting in a $1 billion charge against earnings.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 5

    A PRESENTATION ON SCAM ENRON

    Presented To: Prof. Dipti Bhatt Presented By: Sonali Patel(10mba05) Ami Joshi(10mba09) Vinita Patel(10mba11) Sapna Patel(10mba22) Rupal Patel(10mba46)

    Definition of Corporate Governance


    The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, e mployees, government, and the community).

    Corporate Governance Parties


    Shareholders those that own the company Directors Guardians of the Companys assets for the Shareholders

    Managers who use the Companys assets


    3

    Four Pillars of Corporate Governance

    Accountability - Ensure that management is accountable to the Board Ensure that the Board is accountable to shareholders Fairness - Protect Shareholders rights, Treat all shareholders including minorities, equitably Provide effective redress for violations Transparency - Ensure timely, accurate disclosure on all material matters, including the financial situation, performance, ownership and corporate governance

    Independence - Procedures and structures are in place so as to minimise, or avoid completely conflicts of interest.Independent Directors and Advisers i.e. free from the influence of others

    SPE- Acronym for Special Purpose Entities. SPEs reflect a common financing technique for companies. Companies can cut their risk by moving assets into separate partnerships that can be sold to outside investors. In Enrons case, assets that were losing money were sold to partnerships. Enron listed the sales of these assets as earnings. However, to be legitimate, accounting rules require that an SPE be legally isolated from the company that created it. In Enrons case this was not true. The SPEs relied upon Enron managers for leadership and Enron stock for capital. When outside auditors told Enron to treat some of the 4,000 SPEs it had created as part of Enron, the company had to take the $1-billion charge against earnings

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