Top 3 Accounting Mistakes of 2014
July 23, 2015
Top 3 Ghosts of Accounting-Blunders in 2014
#1 – Tesco’s fall from grace
Tesco is a multinational grocery and general merchandise retailer headquartered in the UK.
What happened?
Commercial department booked payments from suppliers into wrong accounting period.
The price they paid…
£20bn ($31.25 billion) wiped off its value, credit rating plummeted, stocks down by 53%, slipped in ranking from 2nd largest grocer in the world to 3rd largest.
More on this case: Read More…
#2 – Bank of America’s “incorrect adjustment”
What happened?
Wrong accounting data sent to the Federal Reserve.
The price they paid…
$4 billion, plans to raise dividends and buy back stock were suspended.
More on this case: Read More…
#3 – American Realty Capital Properties Inc.
American Realty Capital (“ARC”) is a full-service investment advisory firm sponsoring a series of investment programs with an emphasis on publicly registered non-traded real estate offerings.
What happened?
Accounting errors intentionally concealed.
The price they paid…
$4 billion erased from its market value, resignation of two chief executives, FBI investigation and a review by the Securities and Exchange Commission, credit ratings cut to junk status.
More on this case: Read More…