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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (815)	1/28/2002 5:39:48 PM
From: KLP	Respond to of 3602

If the auditors and lawyers passed on the "SPV's..wonder how many other companies are using them, with possible similar consequences..... From the article you just posted.... >>>>>>>>>>Mark-to-market accounting has long been used, without controversy, by financial firms that trade everything from pork bellies to Treasury bonds. In these markets, trading volume is much higher and therefore quotes given on future prices are generally more trusted. The practice was only marginally fashionable in the energy industry in the late 1980s when the trade in natural gas futures grew, although it soon became routine at Enron. It wasn't until the second half of the 1990s -- when both gas and power trading boomed in the United States -- that accountants nationwide began seeking advice on how to report long-term contracts in quarterly financial statements. The Financial Accounting Standards Board, which sets guidelines for the industry, endorsed mark-to-market as the preferred method in 1998 and stands by its decision. However, the organization's green light could turn yellow if the controversy continues to brew. ``I think there's the potential for improved disclosure,'' said Tim Lucas, director of research at the accounting standards board, whose task force on emerging issues meets in March. ``We do not have this topic on our agenda yet,'' he said.<<<<<<<<<<<<<<<<<