Study of financial statement restatements in the US
10 Apr 2008
The United States Treasury Department has published a study of financial statement restatements by US companies during the period 1997-2006: The Changing Nature and Consequences of Public Company Financial Restatements.
The study, part of Treasury's efforts to encourage US capital markets competitiveness, was conducted by University of Kansas Professor Susan Scholz. Its purpose is "to understand characteristics and consequences of financial statement restatements for violations of US Generally Accepted Accounting Principles (GAAP) over this decade". The study analyzes 6,633 restatements over this period.
These are the broad findings of the restatements study:
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Click to view The Changing Nature and Consequences of Public Company Financial Restatements (PDF 1,558k).