restatement


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Restatement

The release of a previously issued financial statement amended with new information. For example, if a company issues a profit-loss statement and then discovers new information that affects the statement, it may amend the profit-loss statement to reflect the new information. When it releases this to the public, the company is said to make a restatement.

restatement

The altered presentation of a portion or all of an earlier financial statement. For example, a firm may issue a restatement of its previously published balance sheet and income statement because it has discovered some heretofore unknown information that should have been included on it.
References in periodicals archive ?
As a result of this reclassification of the Company's global supply operations as discontinued operations, any restatement is not expected to materially affect the results from continuing operations.
Learning Tree does not expect the restatements to affect reported revenues, cost of revenues, deferred revenue, net cash flows or its aggregate cash and investments.
The net result of the restatement of the FY 2005 Financial Statements is the recording of a non-cash charge of $176,000 to interest expense resulting in a decrease in net income of $176,000, a decrease in the basic and diluted income per share of $0.
Moreover, her efforts since assuming the acting CFO position and throughout the restatement process have been diligent, precise and tireless.
The effects of the restatement will not be material to the results of operations for fiscal year 2005 or affect any historical revenues.
This press release contains statements that constitute forward looking information within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to the Company's expectations regarding the restatement of its previously issued financial statements and the timing of the filing of Company reports with the Securities and Exchange Commission.
Tri-S Security anticipates that the restatement will result in (a) an increase in interest expense of approximately $620,000 and an increase in net loss from $1,265,000 to $1,649,000 for the quarter ended March 31, 2006; and (b) a reduction in interest expense of approximately $78,000 and a reduction in net loss of approximately $59,000 for the quarter ended June 30, 2006.
The cumulative effect of the restatement was to reduce year-end 2005 shareholders' equity by $18.
Certain of this information also appears in the Company's previously-filed Registration Statement on Form S-4 relating to its proposed business combination with ChinaCast Communication Holdings Limited, and the Company will amend that filing to reflect the restatements.
In this study, we focus on whether restatement characteristics are associated with management turnover, because we argue that restatements have different characteristics and may cause various influences on companies.
Negative reactions to restatements declined after 2001, coinciding with the sharp increase in restatement filings- Companies announcing restatements suffered an average 8 percent drop in share price in 1997, when overall market returns increased 30 percent.
Financial restatements grew from 90 in 1997 to 1,577 in 2006 with acceleration in restatement activity occurring in 2001 before the implementation of the Sarbanes-Oxley Act.