The ethical dilemma of corrupt practices and good governance
- Can corporates draw the fine line?-April 10, 2015
I am certain that most of youhave heard of the Enron scandal which led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, and the dissolution, in 2002, of Arthur Andersen, one of the five largest audit and accountancy partnerships in the world.
Enron, through the use of accounting loopholes and poor financial reporting, hid billions of dollars in debt from failed deals and projects. It became the first non-financial company to use the mark-to-market accounting method to account for its complex long-term contracts.
Enron, through the use of accounting loopholes and poor financial reporting, hid billions of dollars in debt from failed deals and projects. It became the first non-financial company to use the mark-to-market accounting method to account for its complex long-term contracts.
