Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Short-seller and hedge fund manager, Jim Chanos, contends that the Alibaba Group is as problematic in its accounting positions as the now-defunct, corrupt energy giant, Enron.

1. What part of the company’s operations are most problematic and why?
2. What does cash flow have to do with this story?
3. What does Chanos claim is the problem with off-balance sheet entities and why is this like Enron?
4. As the video shows, this is not the first time that Alibaba has had problems with its accounting. What was the issue in the previous situation?

Gandel, S. (2016). Here’s Why Alibaba’s Accounting Is As Alarming As Enron’s. Fortune, May 12 (Retrievable online at