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…

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