Sunedison Inc. (fka SUNEQ)

[FEED_THE_FOXES]

The CFO stated the MOR did not conform to GAAP. There are $7.4 billion in "intercompany receivables" on the MOR books.

Per FASB, “The intercompany transaction must be removed when preparing the consolidated entity’s financial statements because, as discussed in ARB No. 51:“

"The purpose of consolidated statements is to present, primarily for the benefit of the shareholders and creditors of the parent company, the results of operations and the financial position of a parent company and its subsidiaries essentially as if the group were a single company with one or more branches or divisions."

When the intercompany receivable is netted out SUNE is at least $1 billion in negative equity.