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Enron : Climax of executive greed and deception
Page entitled :
The Gas Bank, Enron Finance Corp. and mark-to-market accounting
Content of this page is about :
How Jeff Skilling joined Enron, created the gas bank, Enron Finance Corp.
and introduced mark-to-market accounting, while traders and dealmakers
became
the new stars.
Extract :
... using mark-to-market accounting, Skilling’s division [Enron Gas Services
– the result of merging Enron Finance with Enron Gas Marketing] could book
immediate multi-million profits on contracts for which cash would flow only
in the future, based on subjective assumptions. If market conditions changed
affecting the said contracts, favorable deviations would lead to additional
millions of book profits, whereas unfavorable deviations could be overlooked,
with the idea of future ...
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