via FT - On Blance Sheet Fraud

"Mr Fastow said that it was possible for a company to comply with accounting standards while at the same time painting a misleading picture of its real financials.

“If everyone understands the rules and knows how to manipulate the rules, it’s fair game right?”

Referring to himself as “the chief loophole officer” at Enron, he said: “sometimes you follow accounting rules and they are nonsensical”."

Enron had audited balance sheets. The fact that balance sheets are audited and yet there are obvious irregularities says there is nothing new under the sun.

The one example of balance sheet irregularity that is blatant to the point of being nonsensical is the accumulated deficit increased markedly quarter over quarter while the company was presumably shut down.

And yet, you won't find a line anywhere in GBN.V's balance sheet on how much cash was swapped for gold on a per ounce basis anywhere in the last year.

The numbers don't make sense, and the deeper you look into the company, the more you come up with a spaghetti plate full of loopholes..