Par Enron Corporation was a darling in the energy-provider arena

ParEnron Corporation was a darling in the energy-provider arena, and in January 2001 its stock pricerose above $100 per share. A collapse of investor confidence in 2001 and revelations of accountingirregularities led to one of the largest bankruptcies in U.S. history. By the end of the year, Enron’sstock price had plummeted to less than $1 per share. Investigations and lawsuits followed. Oneproblem area concerned transactions with related parties that were not adequately disclosed in thecompany’s financialstatements. Critics stated that the lack of information about these transactions made it difficult foranalystsfollowing Enron to identify problems the company wasexperiencing.Required:1. Obtain the relevant authoritative literature on related-party transactions using the FASB’sCodificationResearch System. What is the specific citation that outlines the required information on relatedparty disclosures that must be included in the notes to the financial statements?2.Describe the disclosures required for related-partytransactions.3. Why is it important that companies disclose related-party transactions? Use the Enron disclosureof the sale of dark fiber inventory in your answer.