Case-ENRON- Cooking the books with natural gas and electricty Assignment

Case-ENRON- Cooking the books with natural gas and electricty - Assignment ExampleOne of the biggest victims of the Enron soil was the employees of the conjunction. The company set up a pension fund that matched employee contributions with Enron stocks. The pension plans that employees had worked for on many instances oer 20 years became worthless overnight when the scandal broke out. The companys stock in 2001 after the revelation of the scandal that led at the time to the biggest bankruptcy in U.S. history went trim down to $0.40 from its all time high of $90 a year earlier.The accountants and the executive management team of Enron were entirely unethical. The market to market accounting the firm used inflated income by overstating the value of energy contr stand fors. To act in an ethical manner using market to market accounting the income estimates should have followed the principle of conservatism. The unethical strategy the managers used was biased because the managers reco gnize energy contracts in a manner to maximize the endue value of the contract in order to receive higher bonuses. In regards to off-balance sheet transactions the company was extremely unethical because it created over 3,000 special purpose entities to hide the actual debt of the