The research of accounting issues involved with special purpose entity

• Main Authors: Choa-Han Lee, 李昭翰
• Other Authors: Yi Tsou
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/89023427317877750125

碩士 === 中原大學 === 會計研究所 === 91 === Abstract In this paper, I will first explain the definition of special purpose entity (SPE). In Enron’s case, which happened in November 2001, I will discuss how manipulation of financial statements with SPE differs from traditional accounting techniques. There may be usage of SPE in Taiwan. Because its influence of financial statement, I will discuss the application of SPE and try to make some suggestions. The rules of SPE under IAS and FASB are different. In this paper, I expect to make some suggestions by Enron’s failure. This paper consists of five parts, they are: (1) Motive, purpose, skeleton, and methods of this paper. (2) The primary content of this part is application of SPE. I will introduce how manipulation of financial statements with SPE by the manager of Enron. I reference “Report of Investigation by the Special Investigative Committee of the Board of Directors of Enron Corp” to understand this manipulation. (3) How to cope this failure of financial statement is very important for the U.S. government. I introduce several correctives of the U.S. government, including amendment of GAAP. (4) The bankruptcy of the Enron Corporation associated with its abuse of SPE. From our review of the slowly evolving authoritative guidance on the proper GAAP accounting for SPE, we draw the conclusions. (5) There will be application of SPE in the future in our country. The inherent and built-in of transparency of SPE also provide ample opportunities for managers to manipulate financial statement. I expect to make some useful suggestions by this failure of Enron.