Quasi-Reorganization

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Quasi-Reorganization

In American accounting, the act of changing a company's records to eliminate a deficit in retained earnings by restating its balance sheet as if it were in bankruptcy. No bankruptcy is actually filed, however, and shareholders must agree to the changes. Quasi-reorganizations are controversial because they do not improve a company's actual state; rather, they simply make its books appear healthier. It is rarely done in practice.
References in periodicals archive ?
Quasi-Reorganizations: A Survey of Quasi-Reorganizations Disclosed in Corporate Annual Reports to Shareholders, by Hal G.
The renewed interest in quasi reorganizations that followed a 1988 American Institute of CPAs issues paper, Quasi-Reorganizations, is both reinforced and challenged in the FASB DM.
Because the new SOP provides specific guidance for all reorganizations under chapter 11, financial reporting for quasi-reorganizations should not be applied to entities that don't qualify for fresh start reporting when they emerge from reorganization.