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That is the rough equivalent of a farmer's booking profits as soon as he plants the crop.
"There appears to be a culture at Enron of aggressively booking profits and deferring or obscuring losses," Mr. Chanos said.
Company subsidiaries based in low-tax countries were booking profits that were "out of line with economic fundamentals", it said.
That is the rough equivalent of a farmer's booking profits as soon as he plants the crop, Floyd Norris writes in The New York Times.
Its American unit, U.S. Foodservice, was accused of booking profits from vendor promotions and trade allowances before the profits were earned.
The accord aims to prevent parent companies from ducking income taxes in one country by booking profits under a subsidiary in another.
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| Hedge funds that rely on algorithmic trading are outperforming other types of funds, booking profit from market volatility and the soaring price of gold, Reuters writes.
It can't be done … unless they are booking these profits somewhere else," Mr Sikka said.
Why didn't the auditing firm, Arthur Andersen, realize that the company was booking false profits?
Enron's was always a potentially explosive situation, given its aggressive reputation for booking its profits from trades early.
Instead, banks are booking larger profits — and much of the money either leaves the country or sits on balance sheets, waiting for brighter days.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com