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Restatements declined with adjustments, analysis shows

Tammy Whitehouse | January 18, 2019

As restatements numbers have fallen in recent years, so too have out-of-period adjustments, according to a recent analysis by Audit Analytics.

In 2017, public companies recorded a total of 276 out-of-period adjustments, which correct immaterial errors without restating prior financial statements. That’s a decline of 5 percent over the 330 out-of-period adjustments reported in 2016, the firm says, following several years of up-and-down results.

Out-of-period adjustments were unheard of before the Securities and Exchange Commission changed the reporting requirements for error corrections in 2004. In the earliest days of Form 8-K disclosure requirements to alert the market to errors, adjustments started to rise to double digits while...

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