A&A

Why Do Companies Restate Financial Results?

Financial restatements were up in 2018. Though restatements have a negative stigma, the uptick may not necessarily signal an increase in mismanagement or a deterioration in internal controls. Mundane reasons for revising annual reports include misinterpretation of accounting rules and changes in accounting oversight. In light of recent changes to the accounting and tax guidance, your in-house accounting personnel may need our help to understand how to properly report transactions. If mistakes do happen, we can also help them manage the restatement process, communicate with stakeholders in an effective, reassuring manner, and take any needed corrective actions.

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