It’s been almost ten years since the Enron scandal was revealed in October 2001. Let’s not forget the impact this has had on business debt recovery and credit risk assessment. The following is a re-printed Creditworthy Newsclip from 6/26/02:

FINANCIAL TRICKS

The Enron fiasco has made everyone aware of the fact that companies do play games with their financial statements in order to adjust them to what they want.  In most cases, that means making the statement appear to be better than it actually is in order to help their stock price, obtain favorable loans or to just survive to fight another day. (more…)