The jury learned about accounting jargon in the fraud and conspiracy trial of Jeff Skilling and Ken Lay. Houston Public Radio’s Capella Tucker reports.
Good morning, I’m Capella Tucker, Houston Public Radio Business News.
The Enron trial got bogged down in accounting jargon yesterday. The jury learned about the different ways to value a business and about financial reserve funds.Former Arthur Andersen partner Thomas Bauer testified that reserve funds are not to be used to boost earnings statements. The prosecution introduced documents suggesting Enron did just that. Bauer testified that Andersen did not know the true reasons why Enron was restating reserve amounts. Defense attorneys suggested otherwise. They introduced e-mails between Enron and other Andersen employees concerning the reserve accounts.
Bauer will return to the stand this morning for more cross examination. Still to come is former Enron treasurer Ben Glisan who is serving a five year sentence for his role in the LJM partnership. Capella Tucker, Houston Public Radio Business News.