Last Year Financial Restatements Increased By Big Companies

The number of financial restatements has increased by lager public companies in recent years and these are known as accelerated filers in a row for the fourth year.

An audit analytical firm’s new research report showed that accelerated filers disclosed restatements in 2010 were 171, then in 2011 these were 211, in 2012 were 284, in 2013 were 290 and in 2014 their number increased to 309. Public float of accelerated filers is $75 million.

The revised restatements in 2014 showed that about 76.4 percent of disclosed restatements by 10-k filers. This disclosed requirement revealed in August 2004, which is the highest percentage of that time.

The public traded companies on NASDAQ, Amex or NYSE showed the audit analysis of the average income adjustment per restatement was about $1.9 million last year. This is the lowest figure during the last eight years evaluated.

In 2014, on NYSE, NASDAQ or Amex, the disclosed restatements by publicly traded companies were approximately 59.1 percent, which had no effect on earnings. And this is the highest figure during eight years evaluated.

During 2014, the restatement period – which is average number of days, was 496 days, that is the lowest figure during the last thirteen years and also the second lowest figure analyzed since 2001.

Moreover, to calculating the number of restatement revelations, Audit Analytics also considered the sternness of the restatements filed last year and originated that their effect remained normally low. The average number of problems caught up in a restatement was 1.65 problems per restatement in 2014, which is to some extent larger than the preceding five years, but much lesser than the 2.42 problems per restatement in 2005.