The Nature of the Enron Scandal: Mark-to-Market Accounting When Skilling joined Enron, he immediately called for change in the accounting method from the traditional “historical cost” to “mark-to-market cost”. This innovative change is so inherently tied to Skilling...
The Nature of the Enron Scandal: Revenue Recognition The Enron scandal cannot be attributed to just one type of financial scheme or even just one person. Rather, it was an amalgam of complex events that contributed to the company’s eventual collapse. So complex, in...
The Writing on the Wall: Early Enron Scandals Financial scandals ensued almost immediately at the newly dubbed Enron Corp. In 1987, two oil traders at the subsidiary Enron Oil Corp. were found to be diverting company profits to a Channel Islands account for personal...
In 2006, Jeffrey Skilling was sentenced to 24 years in federal prison for his role in the historic 2001 collapse of energy giant, Enron. In 2013, the United States Department of Justice reduced Skilling’s sentence by a full ten years, and he is now eligible for...
