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Enron Mail |
Do you have an answer to this question? Should ENA continue to transact with
EI? Sara Lynn Aven@ENRON_DEVELOPMENT 10/25/99 03:20 PM To: Carolyn Barrett/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Sara Shackleton@ENRON_DEVELOPMENT, Bruce Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kent Castleman Subject: Use of Enron Interntional For Brazilian Transactions Carolyn: During 1999, there have been several purchases of NDF's related to the Elektro risk. ENA, formerly ECT, purchased the NDF's and then did a back to back NDF with Enron International for the identical risk. The gain or loss associated with the NDF thus was reflected on EI's books. Now that EI is no longer an operating entity, I understand that the same transactions are still being handled on a back to back basis with EI from ENA.. Do you foresee that this will be a long range approach to these sorts of transactions or will each of the regions have to execute an ISDA agreement with ENA in order to get the gain or loss on the appropriate regions's books? From a tax perspective, the income is all US source income and therefore leaving the income on EI's books while apportioning the gainor loss to the various regions for financial reporting purposes if fine. Thanks for sharing any insight you may have as to how accounting will handle these transactions going forward.
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