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The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis. All posts prior to September, 2007 are in the public domain, but after September 4, 2007, only subscribers to The Analyst's Accounting Observer will see all posts going forward. Only selected, occasional posts will be released to the public domain from September 4 forward.

An Enron Sidebar
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Posted by: Jack Ciesielski 4/21/2006 5:15 AM
All the media attention is (justifiably) on the Skilling and Lay show unfolding in Houston. What did they know? (How much could you NOT know and still be an officer?) What did they intend? One man's earnings management is another man's ... plain old management. And so on.

One small player didn't make the news much in the past week, though. The SEC enjoined one David T. Leboe from practicing before the Commission - that means, working as an accountant in a publicly-traded company - for five years. After that, he can ask for, but not necessarily receive, the chance to do so once again.

What did Leboe do at Enron? As an accountant with Enron North America, he's been charged with:

improperly accelerating the recognition of revenue from the sale of a construction contract,

concealing undocumented side agreements from Enron's independent auditors and,

he actively sought to keep others from disclosing information to Enron's independent auditors about these side agreements.

Hard to believe nothing was going on there, Mr. Skilling.
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