What is Raptor in accounting?
Enron managers went to extraordinary lengths to circumvent accounting rules in order to artificially increase earnings through a series of schemes involving the “Raptors”—a group of entities designed to both buffer Enron’s earnings from mark-to-market write-downs and to pay millions of dollars to a handful of Enron …
How did Enron Raptors work?
Enron embarked on new schemes to lock in gains while avoiding booking losses. In 2000, SPEs called Enron Raptors would buy underperforming Enron assets. If the assets continued to decline in value, the Raptors would pay Enron, thus giving Enron a gain that would offset the loss.
What do the Raptors represent in Enron?
The special purpose entities, or Raptors, as they later came to be called, were represented on stage by dinosaur-like figures that physically consumed Enron’s debt. Curiously, their relationship to Fastow resembles that between a master and his beloved pets, between a father and his children.
How did Enron use special purpose entities?
Enron, like many other companies, used “special purpose entities” (SPEs) to access capital or hedge risk. Transferring these assets to SPEs meant their losses would be kept off Enron’s books. To compensate partnership investors for downside risk, Enron promised issuance of additional shares of its stock.
What happened to the employees of Enron?
Most of the 5,000 people turned out of work in the Enron collapse found new jobs and managed to land on their feet. But many had put their retirement money into Enron stock, and they’re now at the back of a long line of creditors.
What exactly did Enron do?
Enron was an energy company that began to trade extensively in energy derivatives markets. The company hid massive trading losses, ultimately leading to one of the largest accounting scandals and bankruptcy in recent history.
What do you need to know about Raptor programming?
RAPTOR is a flowchart-based programming environment, designed specifically to help students visualize their algorithms and avoid syntactic baggage. RAPTOR programs are created visually and executed visually by tracing the execution through the flowchart. Required syntax is kept to a minimum. Students prefer using flowcharts to express their
What do you need to know about Raptor flowchart?
Welcome to the RAPTOR home page. RAPTOR is a flowchart-based programming environment, designed specifically to help students visualize their algorithms and avoid syntactic baggage. RAPTOR programs are created visually and executed visually by tracing the execution through the flowchart. Required syntax is kept to a minimum.
How is GAAP based on the Raptor transactions?
Therefore, GAAP for the Raptor transactions is based on a series of EITF releases (EITF 84-30, 90-15, 96-21, and Appendix D-14). These releases permit nonconsolidation and sales recognition by the sponsor when an independent third party meets the following conditions:
What does the input symbol mean in Raptor?
A raptor program contains associated symbols that speak to activities to be executed and can be used in Raptor. The input symbol enables users to write down the data value within it.