Consolidations and Off-Balance Sheet Manipulations Due to Enron's abuse of the SPE (Special Purpose Entities) regulations, the SEC and the FASB have promulgated changes to the consolidation of accounting standards. Business combination and consolidation standards greatly affect the degree to which a company can use off-balance sheet manipulations. While the different consolidation methods have no real economic advantage to companies, the methods do have varying impacts on financial statements. Read the case study, Which Firm Would You Invest in First (located in the Week 8 Resources area), and consider why a company might use off-balance sheet manipulations. Consider the role of the accountant in providing stakeholders with the most accurate financial data on a company. Think about the impact off-balance sheet manipulation has on the financial statements of companies who are consolidating resources. Consider consolidation theories and reflect on the extent to which a company should use off-balance sheet manipulation during company consolidation.

With these thoughts in mind:

an argument for or against the use of off-balance sheet manipulation. Support your argument with an example.