Enron Corporation
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded in 1985 as a merger between Houston Natural Gas and InterNorth, both relatively small regional companies. Before its bankruptcy on December 3, 2001, Enron employed approximately 29,000 staff and was a major electricity, natural gas, communications and pulp and paper company, with claimed revenues of nearly $101 billion during 2000. Fortune named Enron “America’s Most Innovative Company” for six consecutive years.
At the end of 2001, it was revealed that Enron’s reported financial condition was sustained by institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron scandal. Enron has since become a well-known example of willful corporate fraud and corruption. The scandal also brought into question the accounting practices and activities of many corporations in the United States and was a factor in the enactment of the Sarbanes–Oxley Act of 2002. The scandal also affected the greater business world by causing the dissolution of the Arthur Andersen accounting firm, which had been Enron’s main auditor for years.
Enron filed for bankruptcy in the Southern District of New York in late 2001 and selected Weil, Gotshal & Manges as its bankruptcy counsel. It ended its bankruptcy during November 2004, pursuant to a court-approved plan of reorganization. A new board of directors changed the name of Enron to Enron Creditors Recovery Corp., and emphasized reorganizing and liquidating certain operations and assets of the pre-bankruptcy Enron. On September 7, 2006, Enron sold Prisma Energy International Inc., its last remaining business, to Ashmore Energy International Ltd. (now AEI).
| Founded | 1985 in Omaha, Nebraska, United States |
|---|---|
| Founder | Kenneth Lay |
| Defunct | 2001 |
| Headquarters | 1400 Smith Street Houston, Texas, United States |
| Area served | United States, India, Caribbean |
| Services | Energy |
| Revenue | $100.789 billion |
| Related Technology Companies: | Dropbox, Cisco, Groupon, Fedex, Cemex, Xerox, Bose, GoPro, Nintendo, Aqualisa, Celcom, IMAX, Barco, Radio One, Capstone, Thomas Green, Foxconn, Monsanto |
Enron Case Study Examples
Enron Company
Enron Company was the latest victim of fraud and embezzlement of resources by its staff. The auditing report, undertaken by independent auditors revealed that Enron storm was brought about by the accounting firm Arthur Anderson. Anderson was both, Enron’s external auditor as well as their internal accountant and advisor. Enron was Anderson’s second biggest client. […]
Enron Case
Question I Give definition of earning management. Discuss in what instances is earnings managementacceptable and in what instances is it not acceptable. Before defining what earnings management is, it is important to understand the meaningof earnings first. Earnings are the profits of a company. Investors and analysts look to earningsto determine the attractiveness of a […]
Enron Company’s Audit Ways
Ten years after the fall of Enron, much has changed about Company’s audit ways. The Enron scandal has been used as a clear symbol of how fraud and accounting malpractices can affect the performance of a company. The scandal also brought the accounting methods that are questionable into perspective. The fall of Enron led to […]
The Enron Collapse By: Jeff Porter Kevin Clark Jared Sabelhaus
The Enron Collapse By: Jeff Porter Kevin Clark Jared Sabelhaus February 18, 2005 Introduction Companies have mission statements that often read like inspirational leaflets. Enron’s mission was at first to be the world’s greatest energy company then later revised in early 2001 to be the “world’s greatest company”. In the late 1990’s, Enron seemed to […]
The case study of enron
The case study of Enron Executive Summary Reputation Is Like someone’s face It gives a first glimpse of what you look like. Since the global financial crisis, protecting a firm’s reputation has became an Important and difficult task for the risk managers. For large organizations, reputation is a prized and highly valuable corporate assets, the […]
Enron Accounting methods
Accounting methods have changed over the last couple decades. Numerous Fortune 500 companies were concealing debt in an accounting method known as mark-to- market (Farrell, O. C. , Halt, G. A. , & Farrell, L. 2005). Enron was one of several companies that was holding their debt, while reporting annual earnings of $1 1 1 […]
