Special purpose entity Essays

  • Special Purpose Entities

    1042 Words  | 3 Pages

    The Use of Special Purpose Entities There are many factors that contributed to the downfall of Enron’s empire but it was their strategic use of off-balance sheet entities that placed the use of special purpose entities under a microscope. A special purpose entity or vehicle is a legal, independent subsidiary established by the sponsoring corporation for a temporary time period to complete a particular purpose (Investopedia, 2016). The purpose for creating a special purpose entity would allow a corporation

  • Off Balance Sheet Accounting Case Study

    1403 Words  | 3 Pages

    Off-balance sheet accounting boils down to the simple question: should the sponsoring entity consolidate or not? From the 1980s to the 1990s it was common for sponsoring companies to avoid consolidations despite the fact that they maintained control of assets of special purpose entities (SPEs). Ultimately, this allowed sponsoring companies to hide losses and debt from their own financial statements. From a principles-based view, companies should have to report the assets of a SPE on their financial

  • Advantages And Disadvantages Of Construction System

    568 Words  | 2 Pages

    3) BOT (BUILD, OPERATE AND TRANSFER) DEFINITION BOT basically is a type of contract which involves two sectors that are private and government. The government requested the private sector to provide some infrastructure for the living, so that it can helps in the development of the country. The non-government sector will design, provide finances, construct and also operates the facility (building, school, road, etc.). After some period of time, the ownership will be transferred back to government

  • Politics-Centrist

    545 Words  | 2 Pages

    Politics-Centrist I was pleased to find out that I was a centrist. It’s true that I favor government intervention in some cases, but in other cases, people should be able to govern themselves. Here in the land of freedom, I think it would be impossible for the government to control everyone and every activity. For example the FCC coming up with a plan to crack down on pornography distributed through cable or the “Howard Stern” show which will soon be going to satellite radio. People are paying

  • The Four Forms Of Accountaability In The Challenger Tragedy

    604 Words  | 2 Pages

    Romzek and Dubnick identified four different forms of accountability in the forms of bureaucratic, professional, legal, and political, each of which are used throughout projects to hold people to keeping their word, finishing projects, and making sure they are held accountable for any failures. In the case of the Challenger tragedy, the four are discussed in detail, however this shall go into covering bureaucratic and professional accountability and comparing what is covered by each form. Starting

  • International Accounting Standards And The International Financial Reporting Standards

    1252 Words  | 3 Pages

    financial statements by an entity when it controls one or more child companies or special entities. As for IFRS 12, it addresses the interest disclosure in other entities, such as: subsidiaries, and unconsolidated ‘structured entities’.

  • Enron Scandal

    1285 Words  | 3 Pages

    Enron was a successful American energy, commodities and services company that is better known for one of the most notorious scandals in United States history. Before their involvement in criminal activity, Enron was also one of world’s major electricity and natural gas companies and was named “America’s Most Innovative Company” by Fortune magazine six years in a row. In 1985, Kenneth Lay, founder and CEO of Enron, merged Houston Natural Gas and InterNorth, Inc. to form Enron. By 1992, Enron became

  • Essay On Texas Government

    1057 Words  | 3 Pages

    structure and role of local governments within the state of Texas; the purpose and function of each type of local government; the consolidation of county and city functions into a single governmental entity; and if Texas would be better served by maintaining its several, distinct, types of government, or by consolidating them into broader units of government that would handle the various functions within a single governmental entity. The state of Texas operates under a 131 year old constitution, comprised

  • SME International Definition

    1759 Words  | 4 Pages

    definition of an SME is intended to (a) an entity with no public accountability and (b) an entity that publishes general purpose financial statements for external users. If entities fall under the definition of having a public accountability, as stated in paragraph 1.2 ED, they are not entitled to use the proposed IFRS for SMEs. The IASB’s definition of a public account-tability is not based on a size-threshold determination; rather it is the fact that an entity has issued equity or debt securities in

  • Enron's Downfall: A Tale of Undisclosed Debts

    1255 Words  | 3 Pages

    The stock markets immediately responded to the restatement and the stock price dropped to less than $10 a share (Thomas, 2002). Enron and Dynegy announced the merger agreement of $7.8 billion which would have created Dynegy Corp, where 64% owned by Dynegy and 36% owned by Enron on November 9, 2001 (Enron Fast Facts, 2015). Dynegy terminated merger agreement with Enron on November 28, 2001 due to Enron’s lack of full disclosure of its off-balance-sheet debt. This immediately downgraded Enron’s rating

  • Importance Of Private Partnership In Public Private Sector

    1544 Words  | 4 Pages

    means an arrangement between a government / statutory entity / government owned entity on one side and a private sector entity on the other, for the provision of public assets and/or public services, through investments being made and/or management being undertaken by the private sector entity, for a specified period of time, where there is well defined allocation of risk between the private sector and the public entity and the private entity receives performance linked payments that conform (or

  • Consolidated Financial Statement

    984 Words  | 2 Pages

    company that controls one or more other entities also known as subsidiaries to present the statement. The parent company must also present how much control they have over their subsidiary(s), and that control determines exactly what must be accounted for on the consolidated financial statement ( Warfield, Gribble, etc, 1996). Disclosures are another part in the financial statements, and are required by the Financial Accounting Standards Board. The purpose of the disclosure is to explain recognized

  • Internationalization Of Accounting Standards For Consolidation - Japan

    2189 Words  | 5 Pages

    Internationalization of Accounting Standards for Consolidation - Japan: A Case Study The purpose of this paper will be to examine problems with internationalization of accounting standards for consolidations on methods from an international perspective - specifically, in the US and Japan. This is an especially timely topic as standardization of financial markets is a prerequisite to international free trade. Given the trends toward greater globalization, the motivations of companies for seeking

  • Separate Legal Personality Case Study

    909 Words  | 2 Pages

    Salomon v Salomon & Co Ltd. , and it sets the rock in which our company law rests which stated that the legal entity distinct from its

  • Cemetery Prototype Database

    1892 Words  | 4 Pages

    will include not only information about the graveyards themselves, but also the buildings, individual gravestones and the records of people buried there. [Emphasis added] Key words and phrases (highlighted) were used to determine the appropriate entities and their attributes, and to help determine the kinds of queries that might be useful for key stakeholders. This database will serve a diverse range users, each with different needs. Prior to constructing this database, I created a list of questions

  • Essay On Special Education Inclusion

    1204 Words  | 3 Pages

    Introduction In modern times, special education refers to individualized instruction provided by school districts that fit the needs of a student’s exceptionality (Turnbull, Turnbull, Wehmeyer & Shogren, 2013). Special education is a rewarding field that encompasses the success of all learners with exceptionalities. Consequently, professionals in this discipline have to exhibit characteristics such as patience, ardor, and empathy. These individuals also have to be “self-aware culturally,” and by

  • What Is The Importance Of Separate Legal Entity?

    3071 Words  | 7 Pages

    1a) Separate legal entity refers to the type of legal entity that is detached from its accountability. A company is considered an artificial person, when it’s incorporated by complying with the prescribed procedure, that’s when it comes into being a separate legal entity from its members and officers. The importance of separate legal entity was first established in the landmark case of Salomon v Salomon & Co Ltd (1897), and it was well accepted as part of Malaysian law. In section 169 of the Companies

  • Nt1310 Unit 3 Assignment 1

    662 Words  | 2 Pages

    The Risk: In the first four months of 2014, the Center for Internet SecurityUS entity (CIS) observed increased defacement activity targeting printers used by state, local, tribal, and territorial (SLTT) governments. While current open source reporting identifies seemingly benign defacements of open systems, there is a chance that actors will target printers, copiers, and other embedded devices for more malicious purposes. The Threat: In the first half of 2014 (H1 2014), CIS identified malicious actors

  • Business Entity Concept Essay

    1016 Words  | 3 Pages

    obligations are represented in the financial statements of the company. Business Entity Concept The business entity concept states that all transactions related to the business have to be separately recorded from the other business transactions or expenses of its owners. This concept requires using of special accounting records for the organization which in full eliminate the assets and liabilities of any other entity or the owner. Without this concept it will be quite difficult to discern the financial

  • Enron Stakeholders

    1628 Words  | 4 Pages

    collapse of Enron from the management perspective. The three examples of Enron behaving badly that I am going to study are the incidents in Valhalla, the electricity trading in California and the conflict of interest between Andy Fastow and his special purpose entities (SPE). These are just a few cases that led to the failure of the "World's Leading Company." In 1985 Houston Natural Gas merged with InterNorth, of Omaha, Neb., to form Enron and Ken Lay was named chief executive officer. The company was