Billions of Barrels of Oil Vanish in a Puff of Accounting Smoke
http://www.bloomberg.com/news/articles/2015-12-10/billions-of-barrels-of-oil-vanish-in-a-puff-of-accounting-smoke
In an instant, Chesapeake Energy Corp. will erase the equivalent of 1.1 billion barrels of oil from its books
Now...I truly believe this is the beginning of the end for the CHK company. After reading the link, I guess some energy companies barely skated by last year w/ the $51 price but are definitely screwed this year because of the SEC formula. I dont work at CHK but was definitely keeping an eye on the stock and another eye on this forum. Now that I see this MTM accounting method they used I realize that this thing is a sinking ship.
Sounds just like the Mark-to-Market (MTM) accounting method that records the value of an asset according to its "supposed" current market price. The same accounting method famously used by Enron which proved to be its downfall.
Mark to market, Enron style