Enron - A Tale of Little Assets and Creative Accounting What do you do when you are not making lots of money fast enough � you make it on paper. Welcome to Enron. One of America�s largest corporations was built on a system of accounting practices and home-made subsidiaries that shifted losses away from the parent company and future earnings into current profits. This made for an extremely complex, risky and � in a number of ways � fraudulent environment. Corporate fraud is nothing new, but this would eventually cause the largest corporate financial collapse in American history (Puscas). Some History � Enron was created in 1985 by the merger of Houston Natural Gas, which was headed by Kenneth Lay, and the natural gas company InterNorth, based out of Omaha, Nebraska. There should have been some tell-tale signs of possible doom as one of the first projects on the board of the newly created company � finding a name � brought huge embarrassment. After three months and millions of dollars the consulting firm in charge of coming up with a name founded Enteron. �It derive......

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