Enron Mail |
I would be surprised if this is still not an issue as I believe much of the
inventory is carried at forward values. From: Thomas Myers/ENRON@enronXgate on 01/31/2001 11:18 AM To: Scott Earnest/HOU/ECT@ECT, D Todd Hall/ENRON@enronXgate, Brent A Price/HOU/ECT@ECT, Sheila Glover/HOU/ECT@ECT, Kevin Sweeney/HOU/ECT@ECT, Eric Groves/HOU/ECT@ECT, Mike Perun/NA/Enron@Enron, Shona Wilson/NA/Enron@Enron cc: Sally Beck/HOU/ECT@ECT Subject: Inventory Accounting As follow up from our staff meeting on Monday, here's the SEC position on inventory accounting; Energy trading companies that apply EITF 98-10 (which Enron does), can carry inventory purchased from non affiliates at fair value (spot price). I spoke with John Vickers and he agrees that EGM is appropriately utilizing fair value accounting for it's inventory acquired from 3rd parties. We do need to identify situations where we acquire inventory from an affiliate and determine appropriate treatment. I am aware of this situation in Crude & Products (Scott, I'll set up a meeting to discuss), however please advise if there are any situations outside of Crude & Products that may be of issue. Tom 3-0475
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