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Hidden Financial Risk: Understanding Off-Balance Sheet Accounting
An insider's guide to understanding and eliminating accounting fraud
How do these high-profile accounting scandals occur and what could have been done to prevent them. Hidden Financial Risk fills that void by examining methods for off balance sheet accounting, with a particular emphasis on special purpose entities (SPE), the accounting ruse of choice at Enron and other beleaguered companies. J. Edward Ketz identifies the incentives for managers to deceive investors and creditors about financial risk and also shows investors how to protect their investments in a world filled with accounting and auditing frauds.
J. Edward Ketz, PhD (State College, PA) is MBA Faculty Director and Associate Professor of Accounting at Penn State's Smeal College of Business. He has been cited in the press nearly 300 times since Enron's bankruptcy, including The New York Times, The Wall Street Journal, and The Washington Post.. He has a regular column in Accounting Today.
How do these high-profile accounting scandals occur and what could have been done to prevent them. Hidden Financial Risk fills that void by examining methods for off balance sheet accounting, with a particular emphasis on special purpose entities (SPE), the accounting ruse of choice at Enron and other beleaguered companies. J. Edward Ketz identifies the incentives for managers to deceive investors and creditors about financial risk and also shows investors how to protect their investments in a world filled with accounting and auditing frauds.
J. Edward Ketz, PhD (State College, PA) is MBA Faculty Director and Associate Professor of Accounting at Penn State's Smeal College of Business. He has been cited in the press nearly 300 times since Enron's bankruptcy, including The New York Times, The Wall Street Journal, and The Washington Post.. He has a regular column in Accounting Today.
- GenresAccounting
312 pages, Hardcover
First published January 1, 2003
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February 11, 2013
Somehow came across that book when I was trying to understand how Enron (and other corporations) lied about their financials. It really opened my eyes on accounting treatment/practices, even if some of it might seem basic enough in hindsight. (Especially if you take the Chartered Financial Analyst exams.) Still, if you come across the book, might be worth reading even if, as time passes, might become somewhat less relevant.
Was a passage that even now sticks to me on how Krispy Kreme used special purpose entities (SPEs) up until 2002 for some of their transactions until they received hostility from stockholders. Perhaps that was just the tip of the iceberg for what they were doing. (Suppose the concept of "Channel stuffing" was outside the scope of the book's title.)
One of the books I had borrowed from my university's library back in the day and surprisingly had trouble trying to find the title of this book when referring to it.
Was a passage that even now sticks to me on how Krispy Kreme used special purpose entities (SPEs) up until 2002 for some of their transactions until they received hostility from stockholders. Perhaps that was just the tip of the iceberg for what they were doing. (Suppose the concept of "Channel stuffing" was outside the scope of the book's title.)
One of the books I had borrowed from my university's library back in the day and surprisingly had trouble trying to find the title of this book when referring to it.
Displaying 1 of 1 review