Consolidating financial statements equity arianny celeste dating conner cordova
I took a quick look at the This is quite peculiar that, almost a month after year end, Enron did not have any values that they could discuss with investors, for the largest asset on their balance sheet.
There was no discussion on the assumptions used in valuing these assets either.
Considering this question was posted in the accounting section, let’s skip the MD&A and Financial Highlights and go right to the Financial Statements and Notes/Disclosures.
Without going into business/industry analysis, below are some accounting issues that should at least raise questions to investors. Although there are numerous legitimate reasons revenue could explode in a year, as an investor you would want to exactly how this massive increase revenue came about.
Hostile takeover are portrayed in negative shade, than friendly acquisitions but both create and destroy value to the shareholders in long term depending on the post acquisition scenarios/synergy and on lot of other factors.
These acquisitions were friendly acquisitions, means the management of Target Company wanted to sell the company to the acquirer, whereas in a hostile takeover Target Company management does not want to sell the company to the acquirer.Enron is only a hairline away (1% more in most investments for consolidation) from bringing that amount of liabilities onto it's balance sheet.An extra .6b worth of liabilities that is avoiding consolidation, due to rigid accounting policies and intent of Enron to avoid consolidation, should raise concern to investors.In this blog series, we will be covering concepts related to financial statements consolidation.As the topic is bit complex for people from non-finance background, I will start from the basics covering each and every term, what it means, and relevant context and so on.