Enron did it. Mortgage lenders apparently have done it.
2007-09-09 12:13:19 · 3 answers · asked by zxdfmlp 3 in Business & Finance ➔ Corporations
One way to do it is to record them as operating assets. That keeps debt off the balance sheet and puts it on the income statement as an operating expense.
2007-09-09 14:26:10 · answer #1 · answered by jeff410 7 · 0⤊ 0⤋
In Enron's case they probably just took them off without following the requirements. The CFO (one of the primary conspiritors) did things like make adjusting entries, which isn't normal practice and should be policy not to happen.
2007-09-09 12:30:50 · answer #2 · answered by ? 2 · 0⤊ 0⤋
That's why the Sarbanes Oxley Act of (I think this is the year) 2002 was enacted. It holds publicly held companies to a much higher standard from an accounting and controls perspective. Companies get audited for SOX (nickname) compliance as well as the financials.
2007-09-09 12:48:02 · answer #3 · answered by elbac2 2 · 0⤊ 0⤋