WorldCom Implosion

From a WorldCom press release:

As a result of an internal audit of the company?s capital expenditure accounting, it was determined that certain transfers from line cost expenses to capital accounts during this period were not made in accordance with generally accepted accounting principles (GAAP). The amount of these transfers was $3.055 billion for 2001 and $797 million for first quarter 2002.

That’s rather understated, isn’t it. This is going to be huge. Lots of associations use WorldCom and subsidiaries for web hosting and ISP services. Time to start migration planning.