Category Archives: Accounting

Sunny Forecast For ARCP; Storm Warning For Ex-Boss Schorsch

This week American Realty Capital Properties (ARCP) revealed in filings with the SEC that it has completed its internal investigation into an accounting scandal at the company. The good news: the firm’s underlying real estate portfolio, once valued at $30 … Continue reading

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CFOs and CPAs Beware: The SEC Is Looking Extra Closely At Your Decision Making

A story in today’s The Wall Street Journal (“SEC Gets Busy With Accounting Inquiries”) reports that the SEC has increased its scrutiny of publicly-traded companies’ accounting and disclosures. The SEC focus is shifting away from the high-profile big dollar scandals, … Continue reading

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Did Auditor Conflicted Self-Interest Kill Auditor Mandatory Rotation?

A year-end article in Accounting Today by Richard James laments the demise, in early 2014, of the Public Company Accounting Oversight Board’s (PCAOB) proposal to require mandatory rotation of public company auditors. PCAOB regulates the accounting industry in America. PCAOB … Continue reading

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ARCP: An Avoidable Corporate Disaster

The unfolding story of the accounting scandal at American Realty Capital Properties (ARCP), a fast-growing real estate investment trust (REIT) owning properties valued at $30 billion, provides an object lesson in avoidable corporate disasters. On October 29, 2014 the company … Continue reading

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Real Estate Tycoon Victim Of Corporate Disaster

Real estate tycoon Nicholas Schorsch was forced to resign on December 15, 2014 as head of the $30 billion commercial real estate empire he created. His resignation from the boards of American Realty Capital Properties, along with 15 other related … Continue reading

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Espirito Failure Raises Questions of Auditor Conflicted Self-Interest

In the wake of the collapse of Espirito Santo Group, a 150-year-old Portuguese multi-billion dollar corporate dynasty, questions emerge about why the company’s auditor, KPMG, did not detect financial problems. The Wall Street Journal reports that Espirito was the largest … Continue reading

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Welcome To The Business Decision Blog

During the late 1990s and early 2000s I was a partner in an international CPA firm. It was the time of the tech boom–before the bubble burst. Investment banks, law firms, and clients were enjoying great, and in some cases, … Continue reading

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