Investopedia

Continue to Site »

Restatement

Filed Under » , , , ,
Dictionary Says

Definition of 'Restatement'

The revision and publication of one or more of a company's previous financial statements. A restatement is necessary when it is determined that a previous statement contains a material inaccuracy. The need to restate financial figures can result from accounting errors, noncompliance with generally accepted accounting principles, fraud, misrepresentation or a simple clerical error. A negative restatement often shakes investors' confidence and causes the stock's price to decline.

Investopedia Says

Investopedia explains 'Restatement'

When a publicly traded company determines that it will need to amend its financial statements, it must file SEC form 8-K within four days to notify investors of non-reliance on previously issued financial statements. It will also need to file amended 10-Q forms for the affected quarters and possibly amended 10-Ks (annual forms) depending on how many accounting periods are affected by the mistakes. Not all errors require issuing a new statement, only if it is significant enough, or "material".

Articles Of Interest

  1.

    Impairment Charges: The Good, The Bad And The Ugly

    Impairment charge is a term for writing off worthless goodwill, but you need to know what its potential impact is on EPS.

  2. The Flow Of Company Information

    Learn how to gather all the pieces before you start to put together your puzzle.

  3. The Dangers Of Options Backdating

    This form of executive compensation can pose serious risks for investors.

  4. The Ghouls And Monsters On Wall Street

    Learn about some of the creepiest cases of fraud and the characters behind them.

  5. A Clear Look At EBITDA

    This measure has its benefits, but it can also present earnings through rose-colored glasses.

  6. Playing The Sleuth In A Scandal Stock

    Learn the legwork involved in finding out whether your investment can weather a storm.

  7. If You Don't Mind Volatility, Deere Could Still Do Alright

    Though Deere's shares sold off after earnings, the business model is sound and rolling along.

  8. Agilent Isn't Making It Easy On Investors

    Core operating performance at Agilent needs to improve

  9. Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.

  10. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center