ENRON SCANDAL:-

• In October of 2001, Enron Corporation became

one of the largest bankruptcies in U.S. history

• Enron's $63.4 billion in assets made it the largest

corporate bankruptcy in U.S. history

• Enrons share price dropped from $90 in 2000 to

$1 in december,2001; so the shareholders lost $11
billion
 Key Players in the Enron
Scandal
• Kenney Lay
• Jeffrey Skilling
• Andrew Fastow
 How the scandal happened?
• The way accounting practices was adopted ,it
shows profitability but actually it was not

• False impression was created by the top

management of Enron
 Entities of Enron

financial statements did not clearly depict

its operations and finances with
shareholders and analysts.
Between 1996 to 2000, Enron's revenues
increased by more than 750%, rising from
$13.3 billion in 1996 to $100.8 billion in
2000.
• Enron reported $138.7 billion in revenues,
which placed the company at the sixth
position on the Fortune Global 500.
• Shareholders lost nearly $11 billion when
Enron's stock price.
• Enron filed for bankruptcy under Chapter 11
of the United States Bankruptcy Code
 Enron’s strategies

• Mark-to-market accounting
• Special purpose entities