Research Paper on:
Enron's Failure and its Reasons

Unformatted Sample Text from the Research Paper:
2001. At the time of the filing this was the biggest bankruptcy ever to occur, it was also one that had not been expected as Enron was seen as  a success story growing at a rapid rate and fulfilling the American Dream. The company grew its income from less that $10 billion at the beginning of the 1990s to  a figure of $101 billion in 2000 (Jickling, 2002) The collapse began with a statement that between 1997 and 2000 there had been  an over statement of $569 million and that these years were unreliable. The general feeling is was that the cause of the failure was greed and a lack of integrity  (Leone, 2002). However, if this is to be cited the greed and lack of integrity is not limited to the Enron boardroom. The fault must also lie in an accounting  system that made many of the concealments that took placer legal, or at least borderline, and the attitudes of those who ser the rules and audits the accounts. When looking  at the failure of Enron it is these accounting standards that appear to fail. In looking at the failures of the US accounting system it may be argued that a  collapse in the style of Enron is much more unlikely due to very different accounting environment and culture as well as stricter rules. The collapse of Enron has brought to  the attention of the US accounting standards regulators and the IASB the weaknesses of their systems in such the way the Poly Peck failure impacted on the UK Accounting Standards  Board (Tweedie, 2001). This previous failure is arguably at least part of the reason for the striker standards in the UK. To look at the reasons behind the Enron