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Thursday, February 14 | ||||
Questionable Accounting
(Excerpts from Sherron Watkins' letter to Ken Lay)
Sherron Watkins, an Enron vice president, testified before Congress today. She wrote an anonymous letter to Ken Lay in August 2001 voicing her concern that Enron "would implode in a wave of accounting scandals." The best thing about her letter is that it spells out very clearly what exactly had gone wrong with certain Special Purpose Entities, why their accounting treatment was so questionable to begin with, and what these troubles meant for the future of the company. So if you've been confused about precisely what led to Enron's collapse, her letter will help you understand everything. |
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