|
|
Enron Mail |
Rod - see me comment directly to Dan below.
FYI - We will probably book the income in December since the transaction was consummated in a 24hour period in December. (I may need to bring a more reality/pragmatic focus into our accounting theory personnel). OK? ---------------------- Forwarded by James Saunders/FGT/Enron on 12/08/2000 07:31 AM --------------------------- James Saunders 12/08/2000 07:29 AM To: Dan Fancler/ET&S/Enron@ENRON cc: Subject: Re: 2002 TW Fuel Sales Trade Confirmation If the deal was closed out -which it was; I would think the accounting would follow. From: Dan Fancler 12/08/2000 07:27 AM To: Rod Hayslett/FGT/Enron@Enron cc: Bob Chandler/ET&S/Enron@ENRON, James Saunders/FGT/Enron@Enron Subject: Re: 2002 TW Fuel Sales Trade Confirmation TW purchased a swap, exchanged a floating 2002 position for a fixed price. It was purchased at current market so there is no profit until the 2002 strip changes in value. Since this derivative has been designated as a hedge of 2002 all changes in market value are deferred in OCI (effective 1/1/01). Dan Rod Hayslett 12/08/2000 06:42 AM To: Bob Chandler/ET&S/Enron@ENRON cc: James Saunders/FGT/Enron@Enron, Dan Fancler/ET&S/Enron@Enron Subject: Re: 2002 TW Fuel Sales Trade Confirmation So they sold it, at a profit, now how do we book it? From: Bob Chandler 12/07/2000 08:42 AM To: James Saunders/FGT/Enron@Enron cc: Rod Hayslett/FGT/Enron@ENRON, Dan Fancler/ET&S/Enron@Enron Subject: Re: 2002 TW Fuel Sales Trade Confirmation It represents a hedge of 2002 forecasted sales of TW over-retained fuel/unaccounted for volumes. The swap will be initially recorded in January 2001 at then market value as a FAS 133 implementation adjustment (any value at 1/1/2001 will go to income as an item of "change in accounting principles"). Monthly fluctuations in the value of the swap will be marked to market with the income effect deferred in Other Comprehensive Income until the hedged item (the physical sale) occurs. The the deferred income will be undeferred and brought to income to offset the income/loss from the hedged transaction. James Saunders 12/07/2000 08:28 AM To: Rod Hayslett/FGT/Enron@ENRON cc: Bob Chandler/ET&S/Enron@ENRON Subject: Re: 2002 TW Fuel Sales Trade Confirmation doesn't it need to be marked to market? Rod Hayslett 12/07/2000 08:24 AM To: James Saunders/FGT/Enron@ENRON cc: Subject: Re: 2002 TW Fuel Sales Trade Confirmation This is for 2002. James Saunders 12/07/2000 08:22 AM To: Bob Chandler/ET&S/Enron@ENRON cc: Rod Hayslett/FGT/Enron@Enron Subject: Re: 2002 TW Fuel Sales Trade Confirmation We sold short at $4.50? That would mean we're already under water?
|