Retail investors shouldn’t be investing in individual stocks outside of industries they understand well. Following GAAP is the definition of not hiding the obligations.
Retail investors shouldn’t be investing in individual stocks outside of industries they understand well. Following GAAP is the definition of not hiding the obligations.
Maybe GAAP should be changed? Professional investors have the time to comb through the small print. These off balance sheet activities seem designed to bamboozle the small investor.
Enron also didn't violate GAAP so by your definition, no financial wrongdoings...
The essence of the Enron scandal was the perpetration of accounting fraud. It took down Arthur Andersen. We went from the "Big 5" accounting firms to the "Big 4" because of this. They very much violated GAAP.
https://en.wikipedia.org/wiki/Enron_scandal
[dead]