Special Purpose Entity
topic on 1 show · 2 statements across 1 episodes
2 statements about Special Purpose Entity, every show
Enron booked $100 million in day-one revenue for an unlaunched Blockbuster partnership
“Oh, the service never launched. But of course, with Enron's Mark to Market, they booked over a hundred million dollars in revenue on day one for it, and then they offloaded the project to a special purpose entity.”
Rosenthal: Pre-SOX accounting allowed deconsolidating SPEs with 3% outside capital
“If you set this up, as long as at least three percent, three, one, two, three percent of the capital in that entity comes from outside investors, you can still have The company itself own 97% of the economics of that entity, and you can remove it from your con…”