3 ms·
It’s actually so nuts. People rarely get into the details of how crazy accounting was in Enron. They made an agreement to build a power plant, then booked 50 ye
by josh2600 4y ago
It’s actually so nuts. People rarely get into the details of how crazy accounting was in Enron. They made an agreement to build a power plant, then booked 50 years of profit from operating it before they broke ground.
- Bayart 4y agoI knew about accounting for lifetime costs, but accounting for lifetime profits is a new one hahaha.
- willcipriano 4y agohttps://en.m.wikipedia.org/wiki/Mark-to-market_accounting https://en.m.wikipedia.org/wiki/Mark-to-market_accounting
- perlgeek 4y ago... and shortly after the deal was signed (and the projected profit added to the books), the contract was swapped out / "sold" to a subsidiary mostly owned by Enron, and selling this propped up the books even more. The associated debt was in the subsidiary, and thus didn't show up on the balance sheet.