Mark-to-Market Revenue Recognition or Special Purpose Entities Research Assignment
There is no doubt after watching the movie “Enron, The Smartest Guys in the Room” that mark-to-market revenue recognition and the treatment of special purpose entities (SPE) have come under some scrutiny over the last few years. The first writing assignment will be focused on either mark-to-market revenue recognition method of accounting or SPEs. Here are some guidelines and questions to consider as the assignment is being composed:
What exactly is mark-to-market revenue recognition or SPEs? You will first provide a definition on how the FASB Codification defines either of these accounting treatments. Make sure to cite this resource properly (see below).
How was mark-to-market or SPEs misused by Enron? How has mark-to-market or SPE been revised due to the Enron scandal?
How does the accounting and business community now view either of these accounting treatments? Make sure you find articles to support each side of this view – both positive and negative.
Based upon the research gathered on this method, what is your opinion of either of these treatments and do they still have credence within GAAP?
This research paper must have a minimum of 10 sources (half of which must be peer reviewed).
The paper must adhere to APA guidelines and must be 5 to 6 pages in length, excluding the title page and the reference page.