Problem:
Reasons and justifications for the extensive use of Off-Balance-Sheet Financing in financial reporting .
How does off balance sheet finance exactly work? Give examples.
Even though SPE's are legal ways of setting up partnerships, how was the way Enron used them highly unethical?
How has IAS 10 IAS37 or other accounting regulations aided the situation / or not?
Can there be a balance between reports that are 'fraudulent' and reports that are more 'subtle' ? How does company achieve that? what is the difference in regards to the way they take of their financial statements?
I know some supporters of this practice claim that it permits companies to benefit from business opportunities that would not otherwise be available. but what sort of business opportunities? Examples?
Some say OBSF restricts the usefulness of financial statements, where do we draw the line?
1,225 words plus references