Could be worst than 100 Enrons

Read last week on fasb.com (accounting standards site) that there could be more than $1.25 Trillion dollars in off-balance sheet transactions due to leasing structures. Enron sort off redefined their own methods for recording assets and profits while allowing those cost and liabilities to show under different partnership entities.

New regulations will be implemented in stages based on different variables. This is going to be somewhat interesting to see who, how bad and what entities get hammered in the markets.

It's almost scary in a way. To read or grasp a better understanding visit fasb's site.

It wasn't long ago the same obs (off balance sheet transactions) were happening when huge companies paid out options as bonuses, those huge amounts had no affects on P&L's. After reading thAt I phoned 2 cap friends who both said it couldn't be the case only to learn later it was the case and changes were made to reduce the enormous option based comps, which sort of sucked because my employer cut down our option amounts.