How did Enron misrepresent itself financially?

It's more accurate to say that Enron overdisclosed. It had such a complicated financial structure, and such extensive disclosure about it, that no one looked through it to figure things out. When analysts asked questions, they were given long, complete answers, but none of them ever put together the whole picture. read more

It’s more accurate to say that Enron overdisclosed. It had such a complicated financial structure, and such extensive disclosure about it, that no one looked through it to figure things out. read more

But how these financial issues turned into a scandal: Arthur Andersen. Enron’s auditor. They willfully or negligently practiced bad auditing to keep Enron’s stock prices high; The major thing they did was fraudulent “mark to market” accounting. read more

While the ENRON executives were pocketing the investment funds from unsuspecting investors, those funds were being stolen from the company, which resulted in the bankruptcy of the company. ENRON Scandal Summary: Losses and Consequences. Due to the actions of the ENRON executives, the ENRON Company went bankrupt. read more

Enron did have very aggressive accounting procedures, only one was clearly against the rules. The rest were disclosed clearly, and used by other companies, although not to such as great an extent. Enron recorded much of its trading activity on a merchant basis rather than an agent basis. read more

ENRON Scandal Summary: Losses and Consequences Due to the actions of the ENRON executives, the ENRON Company went bankrupt. The loss sustained by investors exceeded $70 billion. read more