Business Context and Reporting Period
This Form 8-K is filed by ACRES Commercial Realty Corp. on April 27, 2026. The report discloses a change in the Company's independent registered public accounting firm, effective upon the filing of the Form 10-Q for the quarter ended March 31, 2026.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Dismissal of Previous Auditor: The Audit Committee dismissed Ernst & Young LLP (EY) as the independent registered public accounting firm.
- Appointment of New Auditor: The Audit Committee appointed PricewaterhouseCoopers LLP (PwC) as the new independent registered public accounting firm for the fiscal year ending December 31, 2026.
- Reason for Change: The dismissal of EY was not related to any disagreements on accounting principles, financial statement disclosure, or auditing scope. EY's reports for fiscal years 2024 and 2025 contained no adverse opinions, disclaimers, or qualifications.
- Consultations: The Company did not consult with PwC regarding any matters described in Regulation S-K Items 304(a)(2)(i) and (ii) during the two most recent fiscal years or subsequent interim periods.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, or management commentary on business performance. The primary risk disclosed is the transition of the external audit function, though the Company explicitly states there were no "reportable events" or disagreements with the outgoing firm.
Key Facts for Investor Verification
- Verify the effective date of the audit transition in the upcoming Form 10-Q for the quarter ended March 31, 2026.
- Review the letter from Ernst & Young LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the dismissal.
- Monitor future filings for any changes in audit scope or accounting policies under the new firm, PwC.