Lessons from Enron for British Business Essay Example | Topics and Well Written Essays - 2750 words

Lessons from Enron for British Business - Essay Example Another accounting gap, which was discovered from the Enron's balance sheet, was the recording of the note receivable as an asset. These were the promises to pay the equity claim in the limited partnerships, which Enron recorded as assets even though GAAP requires subscribed equity to be reported as a contra-stockholders' equity account, rather than as a note receivable. Once it was accused of GAAP violations, Enron announced it would restate the previous 4 As years of financial statements by recording a $1.2 billion reduction in stockholders' equity, adjusting its income statements and balance sheets for the unconsolidated SPEs, and making prior-period proposed audit adjustments and reclassifications that had originally been considered as immaterial. Enron's restatement reduced previously reported net income by $569 million and reduced shareholders' equity by $1.2 billion. Shortly after these announcements, several rating agencies lowered Enron's long-term debt to below-investment grade, and Dynegy terminated its proposed merger agreement with Enron. In December 2001, Enron filed for Chapter 11 bankruptcy protection. Charles Mulford, co-author of The Financial Numbers Game, says, "the accounting model isn't broken, financial reporting just needs some tweaks." The Enron used the most common off balance sheet financing technique. ... Enron's restatement reduced previously reported net income by $569 million and reduced shareholders' equity by $1.2 billion. Shortly after these announcements, several rating agencies lowered Enron's long-term debt to below-investment grade, and Dynegy terminated its proposed merger agreement with Enron. In December 2001, Enron filed for Chapter 11 bankruptcy protection. Off Balance Sheet Financing: 2nd aspect: Charles Mulford, co-author of The Financial Numbers Game, says, "the accounting model isn't broken, financial reporting just needs some tweaks." The Enron used the most common off balance sheet financing technique. Enron conducted much of its business in these entities that they controlled. They transacted with themselves. That kind of self-dealing allowed them to report profits when they weren't traditionally making a profit." (Cited in Kelcher, 2002) Definition: Off balance sheet usually means an asset or debt or financing activity not on the company's balance sheet. It could involve a lease or a separate subsidiary or a contingent liability such as a letter of credit. (Wikipedia, 2005) Can be explained as the different methods of acquiring capital by a company, which is not stated, on the financial statement of the company. The most commonly used methods of raising money which does not appear on the balance sheet is in the shape of the research and development partnerships, different kinds of lease, and Joint ventures etc. are the common methods used. Most of the companies obtain funds by using their product idea on intelligence and knowledge about any specific field and acquiring the capital from the partner. Since the partner who is providing

Information on DBMS of Microsoft SQL Essay Example | Topics and Well Written Essays - 500 words

Information on DBMS of Microsoft SQL - Essay Example Other users can read and modify the record anytime while the main user is performing operations on the output displayed. Shared locks allow concurrent users to read data. They are released when the data is read. Exclusive locks do not allow concurrent transactions on the data. Update locks are used to prevent deadlock where if a transaction updates data, it becomes exclusive lock else shared lock. Intent locks signify which granular level the SQL server wants to acquire lock. This technique uses logs to record the updates. The update log defines a single write on the table. This log contains the identifier for the transaction, the data item, the old and the new value updated. Once a transaction performs a write, log record for it is created. This log helps in recovering the data. This method also uses log to record the data but the write action is deferred until the transaction is partially committed. Once the transaction partially commits, the data on the log is executed in deferred writes. In case the system crashes, the data on the log is ignored. Two page tables (Current page table and shadow page table) are maintained in this technique. Each time a write occurs in the current page, it points to a page in the disk and a copy of it is made in the shadow table. When a system crashes, data is recovered from shadow table. It is a point where all the transactions are updated to reflect the data in the log. This updates the data properly to all the transactions ensuring no conflicts occur. This checkpoint ensures that all the data is committed in the SQL