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To: patron_anejo_por_favor who wrote (32885)	3/3/2002 8:52:05 PM
From: stockman_scott	Read Replies (1) \| Respond to of 209892

Bob Brinker on an amazing Forbes article: '93 Enron's Hidden Risk's: Bob gave credit to Forbes for the article they published 9 years ago about Enron. Back in 1993, Forbes said that despite Enron's smashing success, it had hidden risks. Forbes talked about Enron's very aggressive accounting practices. It stated that in 1991, Enron became the first and only non-financial public company to adopt mark-to-market accounting practices. That means that Enron booked the discounted present value of future profits from fixed price gas contracts as soon as the contracts were signed. Forbes stated that nothing was wrong with this mark-to- market accounting as long as nothing major happened to impair the value of the contracts. Forbes went on to say that if something unpleasant did happen, Enron would be forced to book losses and write down the contracts. Forbes went on to cite the risk of Enron's ability to sign ever more contracts year after year. This becomes necessary because when a company accelerates its income it has to sign more and more deals to show rising income. When Enron stock was at its peak, its valuation was based on ever-higher growth rates of corporate earnings. Another major issue with Enron was the massive bonuses paid to top executive officers that were based on earnings that subsequently had to be written off! Listen Here... play.rbn.com _____________ <<...That guy needs to do HARD time, as do Fastow, Lay, and some of the clowns at Andersen.<NG>..>> Patron...I couldn't agree with you more...IMHO, The Justice Department needs to send A STRONG MESSAGE that white collar criminals like Fastow, Skilling and Lay will be severely punished and be forced to pay BIG FINES.