Uptick in Restatements Filed in 2010, But Severity Remained Low
Audit Analytics has completed its ten-year analysis of financial restatements. Highlights from the report include the following:
- After three years of decline, financial restatements experienced an uptick in quantity in 2010, largely due to non-accelerated filers.
- Although the number of financial restatements filed increased, the severity remained low.
- One taxonomy category that experienced an increase in the percentage of occurrence in 2010 was "Debt, Quasi-Debt, Warrants & Equity (BCF) Security Issues." This could be attributed to new guidance by ASC 815-40, formerly EITF 07-05, which took effect on January 1, 2009. Some companies that did not adhere to this guidance in 2009 found themselves restating in 2010.
View the Audit Analytics Report: 2010 Financial Restatements A Ten Year Comparison.