Hi Dig,
Unfortunately, the whole of the history affects the balance sheet. So if there are errors in 2009 and 2010, that affects the accumulated deficit (or retained profit if you have one).
The error plainly relates to S, so there's also the issue of Feeney trying to understand how - for instance - they have treated long term contracts, or whether they have capitalised expenses which they should not have done under GAAP. Bear in mind they were a private company so not subject to quite the same strictures as a public one.
I've seen these kinds of issues before, and they are not necessarily sinister. Sometimes you find a tension between an accountant who is creative and another one who is strict. And the switch of control in this case might lead to teething problems that cannot be resolved in an appropriate timescale.
It was a brave move to pull the plug at the last minute. That makes me think they thought they might be able to resolve the issue before the curtain was raised.
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