This week, the Financial Accounting Standards Board approved a new rule, which will be released today. The rule is designed to restrict the use of off-balance-sheet entities and force companies to consolidate them in their books.
Enron had set up hundreds of SPEs on the Cayman isles, and channelled loans from Citibank via the entities to present them as revenue to the energy company.
The new FASB rule will apply to new SPEs immediately, while existing entities need to be consolidated in company books by 1 July 2003.
UK senior partner Phil Verity has been elected for a second term at Mazars
An audit partner has been appointed at Grant Thornton in its North West offices
KPMG has been appointed with “immediate” effect as the auditor of Dorcaster
The audit for Ibstock will be taken over by Deloitte following a competitive tender process