Enron was founded in 1985, and was one of the largest global corporations and the seventh biggest U.S. Company. It had become the world's leading energy brokerage firm. As a flourishing company, it publicly traded, and it seemed like a success story in the world of energy. But in 2001, the company became bankrupt.
In October 2001, when publishing the results of the third quarter of 2001, there appeared a sudden charge of $ 544 million and a capital reduction. These two operations were related to unconsolidated entities until then. In late October 2001, the SEC requested additional information on these transactions and Enron had to prepare a report.
In late November 2001, following the publication of details of these charges, the rating agencies degraded Enron debt. On December 31st, 2001, the SEC opened a full investigation into the accounts of Enron. The share price of the company fell within a few months from $90 to $1. Some 4000 employees were laid off; small investors lost most of their savings for retirement.
The bankruptcy of energy trader also reflects many other companies. The former Enron CEO was sentenced to 24 years in prison. To hide a growing debt, Enron executives have held a double accounting in which losses and debts of companies disappeared through off-balance.
Tags: Enron business and bankruptcy, Michelin, financial statement of Michelin
[...] Indeed, to mask the growing indebtedness of the company, it used over 3,000 front companies as part of a clever technique to conceal debts.These companies could leave out portions of the assets and liabilities of such companies as Enron was considered outside the enterprise. These companies established accounts in "tax havens" such as the Cayman Islands, the Bahamas or Bermuda over several years to make the balance sheets of Enron "more presentable" vis-à-vis shareholders by reducing the debt of Enron. [...]
[...] Goodwill (401) It's an intangible asset.This is the goodwill in price between the VNC and the price paid. This cannot be amortized. Tangible assets (value: 7046) Purchase price of fixed tangibl + cost of commissioning Financial costs expensed Cost of repair and maintenance Land and Industrial Other Total buildings Equipment equipment Trade receivables (2456) The tire is a market close to $130Md. Michelin is the market leader with market share closely followed by Bridgestone which holds market share. Different tires make up this market: pickups, trucks, tires specific to cars. The Michelin Group has a well-identified strategy [...]
[...] II.The financial statements of Michelin (2008) Originally a tire brand, today, as a group comprising several brands, two distribution networks located in six geographic areas, Michelin Group is the global leader when it comes to tires. Compagnie Générale des Etablissements Michelin (CGEM) and its subsidiaries form the Michelin Group. The Company is limited by shares registered in Clermont-Ferrand and listed on the Paris stock exchange. The accounts are prepared using IFRS. All amounts are in thousands of euros. Cost of sales (16,408) Production costs Cost of goods purchased for resale: Acquisition cost of raw materials natural rubber synthetic rubber reinforcing fillers,13% chemicals wire ropes, textile ? [...]
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